FREEJob profit tool

Profit margin
calculator

Enter the selling price and direct job costs to calculate gross profit, margin and markup. Use amounts in your local currency.

Job figures

This calculator provides a planning estimate. Taxes and overhead are not included unless you add them to other direct costs.

Job result

Revenue5,000.00
Direct costs3,000.00
Gross profit2,000.00
Profit margin40.00%
Markup on cost66.67%
FORMULAKnow the difference

Margin is not markup

Margin measures profit against the selling price. Markup measures profit against cost. Use margin to check job performance and markup when building a selling price.

Profit margin

Gross profit / revenue x 100

Shows how much of every revenue unit remains after direct job costs.

Markup

Gross profit / direct costs x 100

Shows how much was added to direct cost to reach the selling price.

FAQCommon questions

Profit margin calculator FAQ

What is gross profit margin?

Gross profit margin is the percentage of job revenue left after direct job costs. Divide gross profit by revenue, then multiply by 100.

What is the difference between margin and markup?

Margin compares profit with selling price. Markup compares profit with cost. The percentages are different even when the revenue and costs are the same.

Which job costs should I include?

Include direct labour, materials, subcontractors, equipment and other costs required to complete the job. Keep overhead separate if you want to measure gross margin.

Know the margin before the job closes

Yes Foreman connects quotes, labour, materials, variations and invoices so job profitability stays visible while the work is moving.