💰 Tradie Job Profit Calculator
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Net Profit (after all costs)
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Gross profit
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Profit margin
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Labour cost
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Overhead amount
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How to Calculate Tradie Job Profit
Understanding your true profit on every job is the difference between running a thriving business and just being busy. This calculator breaks down your job into its real costs:
- Gross profit = Job price – direct materials cost. Shows how much you have left to cover labour and overheads.
- Labour cost = Hours worked × hourly rate (including the tradie's own time).
- Overhead = A percentage of (materials + labour) to cover insurance, vehicle, tools, phones, marketing and admin.
- Net profit = Job price – (materials + labour + overhead). This is your actual earnings from the job.
- Profit margin = Net profit ÷ job price × 100.
Most tradies aim for a net profit margin of 15–25% after all costs. If your margin is consistently below 10%, it's time to raise your prices or cut costs.
Benchmark Profit Margins by Trade
| Trade | Gross Margin | Net Margin |
|---|---|---|
| Concreting | 45–55% | 15–22% |
| Bricklaying | 40–50% | 12–20% |
| Carpentry | 50–65% | 18–28% |
| Plumbing | 55–70% | 20–30% |
| Electrical | 55–68% | 20–28% |
| Landscaping | 40–55% | 12–20% |
Worked Examples
Example 1 — Concreting Job, $10,000
| Item | Amount |
|---|---|
| Job price | $10,000 |
| Materials | $2,500 |
| Labour (40 hrs × $80/hr) | $3,200 |
| Overhead (25%) | $1,425 |
| Net profit | $2,875 (28.75%) |
Example 2 — Landscaping Job, $6,500
| Item | Amount |
|---|---|
| Job price | $6,500 |
| Materials | $1,800 |
| Labour (25 hrs × $70/hr) | $1,750 |
| Overhead (20%) | $710 |
| Net profit | $2,240 (34.5%) |
Frequently Asked Questions
What should I include in my overhead percentage?▾
Overhead includes all indirect business costs: public liability insurance ($2,000–$5,000/yr), vehicle costs (fuel, rego, maintenance), tools and equipment depreciation, mobile phone, internet, accounting fees, marketing, office/admin expenses, workers compensation and superannuation contributions.
Should I include my own labour in the hourly rate?▾
Yes — always include the tradie's own labour at a realistic hourly rate. Many sole traders forget to pay themselves, which understates true costs and leads to underpricing. A reasonable owner-operator rate is $70–$120/hr depending on trade and location.
How often should I review my profit margins?▾
Review your margins quarterly. Material prices change, fuel costs fluctuate, and your overhead may increase. If your margin drops below 15%, it's time to adjust pricing or look for cost savings. Track each job's margin separately — don't rely on annual averages alone.
What's the difference between markup and margin?▾
Markup is the percentage added to cost to arrive at a price. Margin is the percentage of the selling price that is profit. A 50% markup on cost equals a 33% margin. This calculator shows margin — the more useful metric for evaluating business performance.
Disclaimer: This profit calculator provides estimates based on the inputs you provide. Actual profit margins vary by trade, location, business structure and accounting method. Consult your accountant or bookkeeper for personalised financial advice.
Related Business Tools
- Income Tax Calculator — Estimate tax on your business earnings
- GST Calculator — Add or remove GST from quotes and invoices
- Overtime Calculator — Calculate overtime pay for employees
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