How to calculate job profit
4 min read · Updated 2026-10-08
A busy calendar is not the same as a profitable one. Calculating profit per job shows which work pays and which only keeps you occupied.
The formula
Job profit = amount billed − (labour + materials + other costs). Labour is the hours worked multiplied by your cost per hour. Job margin is profit divided by the amount billed.
Worked example
- Billed: 1,200
- Labour: 10 hours at 28 per hour = 280
- Materials: 350; other costs (fuel, parking): 60
- Total costs: 280 + 350 + 60 = 690
- Profit: 1,200 − 690 = 510
- Margin: 510 ÷ 1,200 = 42.5%
Common blind spots
- Unrecorded time: travel, quoting and admin hours add up
- Small purchases that never reach the job: consumables, parking, tolls
- Overhead: this profit is before your fixed costs, so it needs to be large enough to cover them
- Rework: a free fix is a cost
Use the numbers
Compare job profit across customers and types of work, then adjust prices or stop the work that never pays. Our job profit calculator does the sum in seconds. In BusinessPilotOS profit is calculated only from real records: the invoiced subtotal minus the expenses linked to the job, and if there is no invoice yet it tells you profit is not available instead of guessing.
Frequently asked questions
Should I include my own time?
Yes, at a fair cost per hour. Otherwise a job can look profitable only because you worked for free.
Is job profit the same as net profit?
No. Job profit excludes overheads. Net profit is what remains after all costs, including overheads, across the whole business.
How often should I check it?
After each job at first, so your next quote is based on facts. Later, review monthly by customer and by type of work.
Put it into practice
BusinessPilotOS connects quotes, jobs, invoices, payments and costs, so the numbers in this guide come straight from your own records.