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Contractor & construction

Contractor Profit Calculator

Work out what a contracting job actually earns after materials, labour, subs and overhead.

Your numbers

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Result

Net profit $1,066
Net margin 7.72%
Gross profit $3,550
Overhead absorbed $2,484
Gross profit is $3,550 (25.72%). After $2,484 of overhead you keep $1,066, a 7.72% net margin.

Overhead is charged as a percentage of the contract price. Jobs that tie up your crew for longer than their price suggests actually absorb more overhead than this method shows.

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Questions

About this calculator

Why does a job with good gross margin still lose money?

Because overhead is a real cost that gross margin ignores. A 25% gross margin on a business carrying 30% overhead loses money on every job.

How do I find my overhead percentage?

Total annual overhead divided by annual revenue. Most small contractors land between 15% and 30%, and almost all of them guess low before they measure it.

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Estimating is the easy part

The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.