Painting
Painting Business Profit Calculator
Works net profit across the business, where light overhead is the trade's advantage.
Result
Net profit here is before tax and before any owner's draw that is not already inside overhead. If you pay yourself out of what is left, this figure is your wage rather than the company's profit.
Get a Free Business AuditHow the calculation works
Revenue less direct costs less overhead gives net profit and margin. Painting has a structural advantage here: the equipment is inexpensive, so overhead is light compared with equipment-heavy trades, and a well-run painting business can convert a reasonable gross margin into a decent net margin. The corresponding disadvantage is that the same low overhead lets anyone enter, which puts constant pressure on the gross margin.
What moves the number
- Gross margin, which competition pushes down.
- Overhead level, which is light in this trade.
- Whether crews are employed or subcontracted.
- Owner compensation, and whether it is counted.
Where this one goes wrong
A painting business showing net profit that does not pay the owner a market wage for the work they do is not profitable, it is a job with extra risk. That distinction matters here more than in capital-intensive trades, because the owner is frequently on the tools and the business has few assets, so what looks like profit is often unpaid labour. State owner compensation explicitly. The employed-against-subcontracted decision is the other structural choice: employing gives control and quality at the cost of carrying people through quiet periods, while subcontracting is flexible and thinner on margin.
Before you quote
- Pay the owner a market wage before calling the remainder profit.
- Compare the employed and subcontracted models on your own numbers.
- Track gross margin against competitive pressure over time.
Questions
About this calculator
Is my painting business actually profitable?
Only if the owner is paid a market wage for the work they do before the remainder is called profit. In a trade with few assets and an owner often on the tools, what looks like profit is frequently unpaid labour, and that distinction decides whether the business is worth anything.
Employ painters or use subcontractors?
Employing gives control over quality and scheduling at the cost of carrying people through quiet periods. Subcontracting is flexible and the margin is thinner, since their rate already includes their profit. Most businesses settle on a core employed crew with subcontract capacity at peak.
Why is painting net margin better than it looks?
Because overhead is light. The equipment is inexpensive, there is no fleet of specialist machines, and premises can be modest. That lets a reasonable gross margin convert into a decent net margin, which is the structural compensation for the heavy price competition.
The formula
net profit = revenue - direct costs - overhead
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How to use this calculator
- Revenue ($). Enter your own figure; the page starts at $40,000.
- Direct labour ($). Enter your own figure; the page starts at $16,000.
- Materials and equipment ($). Enter your own figure; the page starts at $11,000.
- Other direct costs ($). Enter your own figure; the page starts at $2,200.
- Overhead ($). Enter your own figure; the page starts at $9,500.
The result updates as you type, so you can try a figure, see what it does to net profit, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Revenue | $40,000 |
| Direct labour | $16,000 |
| Materials and equipment | $11,000 |
| Other direct costs | $2,200 |
| Overhead | $9,500 |
What comes out
| Result | Value |
|---|---|
| Net profit main result | $1,300 |
| Net margin | 3.3% |
| Total direct cost | $29,200 |
| Profit per working day | $59.09 |
That is $1,300 at a 3.3% margin, about $59.09 for every working day.
How sensitive the answer is
Holding everything else steady and changing only revenue, this is what happens to net profit. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Revenue ($) | Net profit |
|---|---|
| $20,000 | -$18,700 |
| $30,000 | -$8,700 |
| $40,000 example above | $1,300 |
| $60,000 | $21,300 |
| $80,000 | $41,300 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Revenue ($)
- A money amount, starting at $40,000.
- Direct labour ($)
- A money amount, starting at $16,000.
- Materials and equipment ($)
- A money amount, starting at $11,000.
- Other direct costs ($)
- A money amount, starting at $2,200.
- Overhead ($)
- A money amount, starting at $9,500.
What the results tell you
| Result | What it is |
|---|---|
| Net profit | The headline result. A money figure. |
| Net margin | A percentage. |
| Total direct cost | A money figure. |
| Profit per working day | A money figure. |
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.