Free calculator · Instant result
How Profitable Was That Job?
Enter what you charged and what the job really cost to see your actual profit and margin. Use your own numbers and get your answer straight away.
Your result
Enter your figures to see your result straight away. Your entries stay in this browser.
Saved on this device only, for 30 days. Your saved figures and results are not sent to BuzzBrain.
BuzzBrain TimeBoost works out the true cost of each job before you quote, keeps quotes moving and shows what each job actually made. Free during private beta testing on iPhone and iPad.
See BuzzBrain TimeBoost →How it's worked out
The calculator compares what you charged with the direct costs of doing the job.
- Labour costHours worked × hourly labour cost (or the total labour cost you enter)
- Total direct job costsLabour + materials + vehicle and travel + machinery and equipment + other direct costs
- Estimated job profitAmount charged − total direct job costs
- Profit marginEstimated job profit ÷ amount charged × 100
- Cost percentageTotal direct job costs ÷ amount charged × 100
- Profit after overhead allowance (optional)Estimated job profit − the overhead allowance you enter
When the amount charged is $0, percentages aren't shown because they can't be worked out meaningfully.
Worked example
An electrician charges $2,400 (ex-GST) for a switchboard upgrade. Two people spend 14 hours between them, and labour costs the business about $58 an hour including super and on-costs.
| Amount charged (ex-GST) | $2,400 |
|---|---|
| Labour | 14 hours × $58 |
| Materials | $780 |
| Vehicle and travel | $90 |
| Machinery and equipment | $120 |
| Other direct costs | $60 |
| Total direct job costs | $1,862 |
|---|---|
| Estimated job profit | $538 |
| Profit margin | 22.4% |
| Cost percentage | 77.6% |
Labour comes to $812. With $1,862 of direct costs, the job leaves $538 to go towards overheads and the business's profit.
Assumptions
- All figures are estimates based on what you enter.
- Amounts should exclude GST. GST collected is passed on to the ATO, so it isn't income for the job.
- Labour cost means what the labour actually costs your business (wages, super, leave, workers compensation and other on-costs), not your charge-out rate.
- Direct costs are costs caused by this job: labour, materials, vehicle and travel, machinery and equipment, and anything else used only for this job.
- Overheads such as rent, insurance, software, admin and your own unpaid time are not included unless you enter an overhead allowance.
- Income tax isn't included. The result is not net profit.
This calculator gives an estimate of direct job profit based only on the figures you enter. It is not net profit, a guarantee, or accounting, tax or financial advice.
FAQ
Job Profitability questions. Answered.
Should I enter amounts including or excluding GST?
Excluding GST. If you're registered for GST, the GST you charge is collected on behalf of the ATO, and you can usually claim back GST on costs. Using ex-GST figures on both sides keeps the comparison fair.
What's the difference between labour cost and charge-out rate?
Your charge-out rate is what the customer pays for an hour. Labour cost is what that hour costs your business: wages plus super, leave, workers compensation and other on-costs. Using the charge-out rate as a cost would make almost every job look like it broke even.
Is this my net profit?
No. It's the profit from the job after its direct costs. Your business still has overheads such as rent, insurance, vehicles, software and admin, plus tax. You can enter an optional overhead allowance to see an estimate after overheads.
What is profit margin?
Profit margin is profit as a percentage of the amount charged. For example, $600 profit on a $2,400 job is a 25% margin. It's different from markup, which is profit as a percentage of cost.
How do I work out an overhead allowance?
One simple way is to add up a year of overheads and divide by the number of jobs, or by billable hours and multiply by the hours on this job. It's only an estimate, so your accountant can help you choose a method that suits your business.
Why doesn't it show a percentage when the amount charged is $0?
A margin is worked out by dividing by the amount charged. With $0 charged there's nothing to divide by, so the calculator shows the dollar result only.
Your next step
BuzzBrain TimeBoost
BuzzBrain TimeBoost works out the true cost of each job before you quote, keeps quotes moving and shows what each job actually made. Free during private beta testing on iPhone and iPad.
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