Profit Margin Calculator [Free Tool]
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Use it to get three easy calculations to help you price more profitable jobs, stay on budget, and include markup in your prices.
Why should you focus on your pricing and margins?
Phil Sarros, Director of Education at Steel Toe University explains this pretty well:
“Start thinking about exchanging the really bad, unprofitable work that you might be doing for more profitable work. If you’re a million dollar company running at a 20% margin, you can be a $500,000 company running at a 40% margin, it’s the exact same amount of money with a whole lot less effort.
The focus and the conversation ought to be on the bottom line of your business. And that should just be an intense focus. If you haven’t put that focus and intention and purposefulness on it, I would say step back and take six months, and really focus on that bottom line growth.
It’s not an easy thing to do, but it’s a fun thing to do once you start to get into the math of it and start to manipulate the numbers.”
The focus and the conversation ought to be on the bottom line of your business. And that should just be an intense focus...step back and take six months, and really focus on that bottom line growth. It's not an easy thing to do, but it's a fun thing to do once you start to get into the math.
What you get with this free calculator:
Use this before a job. The Pricing Calculator helps you determine what to price a job.
It also shows Projected Profit and Markup. If you understand your costs and have a target Profit Margin that you’re trying to hit for the job, then you’ll love this tool.
Cost Budget Calculator
Use this before a job. The Cost Budget Calculator helps you determine the target cost budget to keep your job costs under.
This is helpful if you know what you aim to price the job at, and understand the target Profit Margin you’re trying to hit for the job. This calculator also shows Projected Profit and Markup.
Use this after a job. The Markup Calculator helps you determine the Profit Margin, Profit dollar amounts, and job Markup after the real costs (like materials, and labor) and price are added in.