Project Profit Calculator

Gross profit is revenue minus direct project costs (materials, labour, plant, subcontractors). Net profit also deducts overhead allocation (your share of business running costs like van, insurance, admin). Net profit is the true measure of project profitability.

Divide your annual overhead costs by the number of projects or billable days. For example, if overheads are £15,000/year and you do 40 projects, allocate £375 per project. Alternatively, use a daily overhead rate (£15,000 / 220 days = £68/day x project days).

As a general rule of thumb (not a fixed standard), net margins vary widely by trade, project type and region. Across construction generally, typical NET margins are modest — around 5-10% for general contractors, with well-run firms reaching roughly 10-12%. Specialist trades (e.g. electrical, plumbing, niche fit-out) often achieve more, in the region of 10-20%. Do not confuse net margin with gross margin: gross margins (revenue minus direct costs only) are usually much higher (often 15-30%), and a healthy gross margin can still leave a thin net margin once overheads are deducted. Use these figures as a benchmark, not a target carved in stone — know your own numbers.

Tracking profit per project reveals which types of work are most profitable, helps identify pricing errors, shows where costs are out of control, and builds data for more accurate future estimating. Many tradespeople are surprised which jobs actually make money.

Yes - your time has value even as a business owner. Include your own labour at your day rate or an imputed salary. This gives a true picture of profitability. A project showing profit that does not account for your time is misleading.