Contractor Profit Margin Calculator
Calculate your profit margin from job costs and selling price. See exactly how much you're making on every job.
Contractor Profit Margins by Trade
| Trade | Gross Margin | Net Margin |
|---|---|---|
| General Contracting | 20-30% | 5-10% |
| Electrical | 30-40% | 8-15% |
| Plumbing | 28-38% | 8-14% |
| HVAC | 30-42% | 10-16% |
| Roofing | 25-35% | 6-12% |
| Concrete | 25-35% | 6-12% |
| Landscaping | 35-50% | 10-18% |
FAQ
What is a good profit margin for a contractor?
A healthy profit margin for contractors is typically 8-15% net profit after all expenses. Gross margins (before overhead) typically range from 25-45% depending on the trade. Specialty trades like electrical and HVAC tend toward higher margins than general contracting.
What is the difference between gross margin and net margin?
Gross margin is your profit after subtracting direct job costs (materials + labor). Net margin is your profit after all expenses including overhead, insurance, office costs, and taxes. A contractor might have a 35% gross margin but only a 10% net margin.
How do I improve my profit margin?
Improve margins by: (1) accurately estimating jobs to avoid cost overruns, (2) reducing material waste, (3) improving labor productivity, (4) negotiating better supplier pricing, (5) reducing overhead costs, and (6) targeting higher-value projects.
Track margins across all your jobs
Contractor Co-Pilot helps you build accurate estimates so you can protect your margins.