Pricing

Profit Margin Calculator

Calculate the estimated profit, profit margin, and markup on a trade job using its selling price and direct costs.

Currency

Job selling price

Enter the total amount you plan to charge the customer for the job.

Material costs

Include materials and products purchased specifically for the job.

Labour costs

Include your own labour cost as well as wages paid to employees or subcontractors.

Other direct job costs

For example: travel, equipment hire, disposal fees, permits, parking, or subcontractor expenses.

Estimated Results

Profit margin

34%

Estimated profit

€850

Total job costs

€1,650

Markup on costs

51.5%

What this means

Selling price

€2,500

Costs as percentage

66%

Estimated profit

€850

A job selling for €2,500 with estimated direct costs of €1,650 would leave approximately €850 before any additional business overheads or taxes that have not been included.

The estimated profit margin is 34%, while the markup applied to the direct costs is approximately 51.5%.

This job has a healthy estimated profit margin based on the direct costs entered.

This is a simplified job-level estimate. Insurance, office expenses, marketing, vehicles, tools, subscriptions, callbacks, tax, VAT, and other overheads are only reflected if you include them in the costs entered.

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Understanding Your Result

How Profit Margin Works

How profit margin is calculated

Profit Margin = Profit ÷ Selling Price × 100

Profit is the selling price minus the direct costs entered. Profit margin shows what percentage of the selling price remains after those costs are deducted.

Margin and markup are different

Profit margin measures profit as a percentage of the selling price. Markup measures profit as a percentage of the job costs. The two percentages are related, but they are not interchangeable.

Profit Margin Calculator FAQs

How do you calculate profit margin on a job?+

Subtract the total job costs from the selling price to find the estimated profit. Divide that profit by the selling price and multiply by 100 to calculate the profit margin percentage.

What is the difference between margin and markup?+

Margin measures profit against the selling price, while markup measures profit against the underlying costs. A 25% margin is therefore not the same thing as a 25% markup.

What costs should I include?+

Include the direct costs required to complete the job, such as materials, labour, subcontractors, equipment hire, disposal fees, travel, or permits. Include wider overheads separately if you want the result to reflect them too.

Is profit margin the same as net profit?+

Not necessarily. This calculator estimates job-level profit from the costs entered. Business overheads, tax, VAT, and other expenses may still reduce the final net profit.

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