Question 1

How do I work out the real profit on a job?

Accepted Answer

Take the quote and subtract the true costs: materials with waste, every hour on the job at the fully-burdened labour rate (wages plus employer costs), the overhead those hours must carry, callbacks after handover, and subbies or hire. What remains is real profit — usually far below the margin the job was priced at.

Question 2

Why is my actual margin lower than the margin I quoted?

Accepted Answer

Because quotes are usually priced against wages, not true costs. Employer costs add 12–18% to labour, overheads add a share of rent, vans and insurance to every hour, and callback visits come straight off the profit.

Job Profit Margin Calculator