Electrical Profit Margin Calculator

This Electrical Profit Margin Calculator allows you to estimate accurately and walk away with the maximum profit every time.

What is an electrician profit margin calculator?

Your goal is to price each job so that the profit earned covers everything you spent while leaving some money left over to help you grow your business. A profit margin calculator helps you determine how much money your electrical business actually makes once everything is paid for. Your profit margin represents your future! Estimating the price of materials and your team’s time is a big deal.

Who uses an electrician profit margin calculator?

This calculator is perfect for all electrical professionals, from seasoned electricians to those who are amped up about their first project. It’s also great for Pros who hate manually adding up receipts, time sheets, and invoices. This tool offers a quick and easy way to calculate profit margins without the hassle of doing the math yourself.

Why use a profit margin calculator?

Calculating how well each job will pay off should only take a few seconds. Enter the cost of your materials and all expenses, along with what you’re charging, and you’re left with your profit margin. After each job, you’ll be able to easily spot if you misjudged how much work something would take, if you spent more on materials than you planned, or if your expenses are eating into your profits. You’ll also have a clear picture of how efficiently your team is working. Did they perform within budget? Take the knowledge gained from each job and use that data to inform future calculations.

How do you calculate profit margin?

To calculate your profit margin, simply plug each job’s numbers into this handy formula:

((Service Price – Cost) / Service Price) × 100 = Profit Margin %

How do you calculate a job’s labor costs?

Use this simple formula to determine the labor costs for a completed job:

Total Labor Costs = Number of Employees on the Job × Hours to Complete Job × Hourly Pay

If you have more than one employee working on a job and they have different hourly wages, calculate each person’s labor cost by multiplying their hours worked by their hourly pay. Then add up all the results.

How do you calculate a job’s material costs?

Check all your receipts for materials and supplies related to the job. Add up the costs of everything you bought. Whether you had to pick up or order materials, or you took them from your inventory, simply tally up the prices your suppliers charged you for those specific items. Don’t forget to include your markup percentage for materials, if applicable.

If you didn’t use all of a particular material, you can calculate the value of the materials you wound up using for the job.

How do you calculate overhead expenses?

Here’s the simple formula for calculating overhead expenses for a completed job:

(All Monthly Expenses / Working Hours Each Month) x Hours to Complete the Job

Profit Margin Calculator Example

Let’s say the billable revenue for a specific job is $4,000, while the total cost price for the job is $1,000 and the overhead expenses for the job total $1,000.

In that case, the formula used to calculate the profit margin by the calculator is:
[(4,000 – (1,000 + 1,000)) / 4,000] × 100 = 50%