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  3. Profit Checker

Job Profit & Margin Checker

Check whether a quote covers materials, labour, overheads, contingency, and your target profit margin before you send it.

How to use the Job Profit & Margin Checker

  1. Enter the total you plan to quote, excluding VAT.
  2. Add the materials, plant, hire and subcontractor costs for the job.
  3. Enter the total person-days needed and the true daily cost of that labour, including your own time.
  4. Add sensible overhead and contingency allowances, then set the gross margin you want the job to achieve.
  5. Review the break-even figure, projected profit, actual margin and target selling price before sending the quote.
  6. Use the target price in the quote builder if the current figure leaves the job too tight.

Why use this tool

  • Exposes quotes that look profitable until labour, overheads and risk are counted properly.
  • Shows the cash shortfall when a price is below break-even or below the target margin.
  • Separates margin from markup so the desired profit is applied to the correct figure.
  • Remembers the last inputs, making it quick to test revised prices or compare similar jobs.

A quote can cover the merchant bill and still lose money. The business also has to pay for labour, vehicles, insurance, tools, office time, callbacks and the gaps between jobs. This checker treats materials, labour and other job-specific spending as direct costs, then adds overhead and contingency allowances before calculating profit. Gross margin is profit divided by the selling price; markup is profit divided by cost. A 20% markup does not produce a 20% margin. Use the result as a commercial planning check, not a substitute for up-to-date supplier prices, detailed take-offs, tax advice or contract review.

Part of Builder Tools Calculators — free construction tools for UK tradespeople.

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Cost the job properly
Use figures excluding VAT. Your labour cost should be what the time really costs the business, including your own time.

Your selling price

The amount you plan to quote before VAT.

Direct job costs

What leaves the business to deliver this specific job.

Labour cost for this job: £2,640.00. For a crew, add every person-day together.

Business allowances

Both are applied to direct job costs, then profit is measured against the selling price.

Your quote check
Gross profit before tax, based on the costs and allowances entered.
Target covered

Actual gross margin

31.1%

The quote is £1,733.13 above the price needed for your 20% target margin.

Where the price goes

Cost first, profit last.

£12,500.00

  • Direct costs · £7,490.00
  • Overheads · £749.00
  • Contingency · £374.50
  • Profit · £3,886.50

Break-even

£8,613.50

Projected profit

£3,886.50

Target price

£10,766.88

Job profit calculation breakdown
Quote total (ex VAT)£12,500.00
Materials£4,200.00
Labour (12 days × £220.00)£2,640.00
Plant, hire & subcontractors£650.00
Overheads (10%)£749.00
Contingency (5%)£374.50
True cost / break-even£8,613.50
Projected profit£3,886.50
Target price (20% margin)£10,766.88
Build the itemised quote
Margin is not markup

This job currently has a 31.1% margin and a 45.1% markup.

Margin is profit as a share of the selling price. Markup is profit as a share of cost. They are not interchangeable.

Planning aid only. Check supplier prices, employment costs, tax treatment, programme risk and contract terms before issuing a quote.