Contractor Profit Margin Calculator

Calculate the perfect price for your projects to ensure profitability

Free tool by ThePocketBoss - The all-in-one business management app forcontractors. Price your jobs right and track actual costs vs estimates.

Project Cost Inputs

$

Include all wages, benefits, and labor burden

$

All materials, supplies, and equipment rental

%

Insurance, tools, vehicle, office expenses (typically 10-20%)

%

Your target profit percentage (industry average: 15-25%)

Pro Tip: Use ThePocketBoss to track your actual costs vs estimates. Our app helps you identify where you're losing money and improve your pricing accuracy.

Pricing Recommendation

Suggested Project Price
$0
Direct Costs (Labor + Materials)$7,000
Overhead (15%)$0
Total Costs$0
Profit Amount$0
Actual Margin
0.0%
Markup %
0.0%
Profitability Status: Low
Consider increasing your prices to ensure business sustainability.

Understanding Contractor Profit Margins

What is a Good Profit Margin for Contractors?

Most successfulcontractors aim for a net profit margin between 15-25%. However, this varies by trade:

  • General Contractors: 10-20% profit margin
  • Specialty Contractors (HVAC, Electrical, Plumbing): 15-25% profit margin
  • Remodeling Contractors: 20-35% profit margin
  • Landscaping Contractors: 15-20% profit margin

Markup vs Margin: What's the Difference?

Markup is the percentage added to your costs to determine price.Margin is the percentage of the selling price that is profit. A 25% markup equals a 20% margin. This calculator shows both to help you understand your pricing.

Common Pricing Mistakes to Avoid

  • Forgetting to include overhead costs
  • Not tracking actual costs vs estimates
  • Undervaluing your expertise and time
  • Competing on price alone
  • Not adjusting prices for market conditions

How ThePocketBoss Helps You Price Profitably

ThePocketBoss tracks your actual project costs, compares them to estimates, and helps you identify where you're losing money. With features like expense tracking, time tracking, and project management, you'll have the data you need to price jobs accurately and profitably.

Track Your Actual Profit Margins with ThePocketBoss

Stop guessing and start knowing. Track every expense, compare estimates to actuals, and improve your profitability with every project.

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