Roofing
Roofing Gross Profit Calculator
Work out gross profit on a roofing job with direct costs defined consistently.
Result
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.
Get a Free Business AuditWhat moves the number
- Crew labour with burden at the roofing classification.
- Material at landed cost including delivery and waste.
- Disposal, permit and any equipment hire specific to the job.
Where this one goes wrong
Leaving disposal out of direct cost. Tear-off produces significant weight, disposal is charged by it, and a job costed without it looks better than it was.
Questions
About this calculator
Is disposal a direct cost?
Yes. It exists only because the job exists and it scales with the job, which is the definition. Left in overhead it distorts every tear-off job's apparent margin.
Should repair and replacement be measured separately?
Yes. Repairs carry different risk, different travel per dollar and different margins from full replacements, and blending them hides both.
What margin should roofing carry?
Higher than lower-risk trades, because of weather, insurance and scope uncertainty. The right figure depends on your overhead and market, which is why it is worth calculating.
The formula
gross profit = revenue - direct costs
Put this calculator on your site
Free to embed. Paste this where you want it to appear. It stays up to date automatically because it loads from BDEVY.
Please keep the attribution line. It is the only thing we ask in return.
How to use this calculator
- Revenue ($). Enter your own figure; the page starts at $88,000.
- Direct labour ($). 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.
The result updates as you type, so you can try a figure, see what it does to gross 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 | $88,000 |
| Direct labour | $16,000 |
| Materials and equipment | $11,000 |
| Other direct costs | $2,200 |
What comes out
| Result | Value |
|---|---|
| Gross profit main result | $58,800 |
| Gross margin | 66.8% |
| Total direct cost | $29,200 |
| Profit per working day | $2,673 |
That is $58,800 at a 66.8% margin, about $2,673 for every working day. Overhead still has to come out of it.
How sensitive the answer is
Holding everything else steady and changing only revenue, this is what happens to gross profit. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Revenue ($) | Gross profit |
|---|---|
| $44,000 | $14,800 |
| $66,000 | $36,800 |
| $88,000 example above | $58,800 |
| $132,000 | $102,800 |
| $176,000 | $146,800 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Revenue ($)
- A money amount, starting at $88,000.
- Direct labour ($)
- 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.
What the results tell you
| Result | What it is |
|---|---|
| Gross profit | The headline result. A money figure. |
| Gross margin | A percentage. |
| Total direct cost | A money figure. |
| Profit per working day | A money figure. |
What this cannot see
Material quantities assume a clean rectangular plane and the waste factor you enter. Valleys, hips, dormers, penetrations and a steep pitch all raise real waste, and a tear-off frequently uncovers decking that was not in the quote.
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.