Trade job profitability calculator
Before you commit to a price, check the job actually pays. Enter the quote and your costs to see the gross profit, the margin, and what is left before overheads, with a warning if the margin is too thin.
How it works
Gross profit here is the quoted price minus everything you buy in for the job: materials, fuel, subcontractors, waste, lead costs and anything else. It does not yet take your own labour out, so it shows the headroom you have to cover your time and still come out ahead.
Net before overheads then takes the labour off too (your hours at your cost per hour, not your charge-out rate). That is the figure that tells you whether the job genuinely pays once your time on the tools is accounted for.
How to use the result
If the net margin is thin or negative, the job is not earning its keep. Either the price is too low, the labour estimate is too high, or the bought-in costs have crept up since you last quoted this kind of work. Adjust the price until the net margin gives you a comfortable buffer over your overheads, then quote from there rather than from a day rate.
This shows profit on the job before business overheads (premises, admin, insurance not tied to the job, your own wage) and before tax. Net before overheads is not take-home pay.
Frequently asked questions
- What should I put in 'Labour cost per hour' - is that what I charge customers?
- No. Enter what an hour of your time actually costs you, not your charge-out rate. The tool multiplies your hours by this cost to work out the labour figure. If you put in your charge-out rate by mistake, the net before overheads will look far worse than reality, because you would be double-counting your margin as a cost.
- Why is gross profit so much higher than net before overheads?
- Gross profit is the quoted price minus only the things you buy in for the job, such as materials, fuel, subcontractors, waste, leads and other costs. It does not take your own labour out. Net before overheads then removes your hours at your cost per hour. So gross shows headroom to cover your time, and net shows what is left once your time is counted.
- The net margin shows a healthy result, so is that my profit on the job?
- Not your take-home. The tool is clear that net before overheads still has business overheads to come out of it, such as premises, admin, insurance not tied to the job and your own wage, plus tax. A healthy margin here means the job pays before all that. Treat it as a buffer that overheads and tax then eat into, not money in your pocket.
- It says 'Thin margin before overheads, consider repricing.' What counts as thin?
- The tool flags any net margin below 15 percent as thin, and a net before overheads of zero or less as loss-making. A thin result means that after premises, admin, your wage and tax, there may be little left. Either the price is too low, the labour estimate too high, or bought-in costs have crept up. Raise the price until the margin gives you a comfortable buffer.
- How should I act on the result when pricing a job?
- Adjust the quoted price until the net margin gives you a comfortable buffer over your overheads, then quote from that figure rather than from a day rate. If the margin stays thin or negative, check whether your hours are realistic and whether materials or fuel have risen since you last quoted similar work. Remember this is an estimate for one job, not tax or financial advice.