Calculator, Margin
Job Costing and True Margin.
Most owners quote a job on feel, then wonder why the year ends soft. This tool tells you the real margin on a single job after labor, materials, and a fair slice of overhead. Then it tells you what to charge to hit the margin you actually want.
$
$
$
%
As a percent of price. If you do not know, 15 percent is a defensible start.
%
What you want to keep after every cost.
Net profit
$3,000
Net margin
30.0%
Strong. Make sure the price reflects real value, not a quoting mistake.
Cost stack
- Direct labor
- $3,500
- Materials, subs
- $2,000
- Overhead (15%)
- $1,500
- Total cost
- $7,000
- Gross profit (before overhead)
- $4,500
- Markup on direct cost
- 81.8%
- Breakeven price
- $7,000
Price to hit 25% net
$9,167
Charge this and, at 15% overhead, you keep 25% net on the job.
Next step
The calculator shows you the number. I help you act on it.
If your last few jobs looked fine on the quote and thin on the deposit, you have a pricing and cost system problem. That is fixable.
