Job profitability ESTIMATE
Profit on one job after the direct costs and the overhead you choose to assign.
Result ESTIMATE
One job is not the company margin
Job profit is the amount billed minus direct costs minus overhead you type. On a $5,000 bill, $2,000 of direct cost, and $500 of overhead, profit is $2,500, which is a 50% margin on the bill. Gross margin does this for a whole period and usually stops before overhead. Target profit works in units. This page is the single engagement.
The overhead box is yours on purpose. A shop rate of $40 an hour times 12.5 hours is $500. A flat 10% of the bill is also $500. The calculator will not pick the rate. If you leave overhead at zero, you are looking at a contribution, not a fully loaded profit. Say which one you meant when you quote the number.
Match the invoice
The billed amount should match the pre-tax total on the invoice. Sales tax collected is a liability, described in sales tax in the books. A late fee you have not earned yet is not part of this job’s revenue. Direct labor you already ran through payroll belongs in direct costs at gross wages plus the employer taxes you want the job to carry, if that is your costing policy. Write the policy down so the next job uses it too.