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Real estate & rental

Real Estate Agent Deal Profit Calculator

What is left on real estate work after the direct cost of delivering it, before overhead.

Your numbers

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Result

Gross profit $8,800
Gross margin 23.2%
Total direct cost $29,200
Profit per working day $400
That is $8,800 at a 23.2% margin, about $400 for every working day. Overhead still has to come out of it.

Gross profit is what is left after the cost of doing the job. Overhead comes out of that: the building, the office wages, the vans, insurance, software and advertising. A healthy gross margin still loses money if overhead is larger.

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Questions

About this calculator

What belongs in direct cost?

Anything that would not exist if the job did not happen: the labour on it, the materials, the disposal, the subcontractor. Office wages and insurance stay in overhead.

Is gross profit what I can spend?

No. It is what is available to pay for overhead. What is left after that is the only money the business has actually made.

The formula

gross profit = revenue - direct costs

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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.