How it works
Use the result as a checked starting point.
Revenue is not profit. This calculator puts materials, burdened labor, subcontractors, other direct costs, and overhead under the contract price in one clean job-level view.
Run the calculation before bidding, then replace estimated inputs with actuals after closeout. The difference between estimated and actual profit is one of the fastest ways to improve future estimates.
Profit = contract price − (direct cost + allocated overhead). Margin = profit ÷ contract price.
Estimating checks
- Estimate labor using a burdened hourly cost.
- Include disposal, permits, rentals, delivery, and small tools.
- Review projected versus actual profit by job type.
Common questions
What is a good contractor profit margin?
It depends on trade, risk, market, and business model. Use your historical actuals and required return rather than a generic target.
How is overhead calculated here?
As a percentage of direct job cost. If your company uses another allocation method, convert it to an equivalent job amount.
Can profit be negative?
Yes. A negative result means the entered contract price does not cover the entered job cost and overhead.