Job Profitability Calculator for Trades (2025)
A simple job profitability calculator for UK trades in 2025, with the exact inputs to track margin per job.
Not financial advice
Pricing guidance here is educational. Model rate changes against your own books, suppliers, and market before implementing them.
The Reality: Revenue is not profit. If you do not measure margin by job, you will keep doing work that looks busy but pays poorly.
For the difference between markup and margin, see Markup vs Margin Pricing Guide 2026.
The calculator (inputs)
Revenue
- Total invoice value
Direct costs
- Materials
- Labor hours x true hourly cost
- Subcontractors
- Disposal or permits
Gross profit
- Revenue minus direct costs
Gross margin
- Gross profit divided by revenue
If you need a template, use Job Costing Template for UK Trade Businesses.
How to calculate true hourly labor cost
Do not use wage only. Use this simplified formula:
Hourly cost = (Hourly wage x 1.25) + travel time cost
The 1.25 factor is a quick proxy for payroll burden, tools, and admin time.
Example calculation
Revenue: GBP 2,400 Materials: GBP 620 Labor: 16 hours x GBP 25 = GBP 400 Subcontractors: GBP 300
Gross profit = 2,400 - (620 + 400 + 300) = GBP 1,080 Gross margin = 1,080 / 2,400 = 45 percent
Compare your numbers to Profit Margin Benchmarks for Trade Businesses 2026.
A simple scorecard
- 40 percent or above: strong
- 25 to 40 percent: acceptable but review
- Under 25 percent: fix price or scope
What to do if margin is low
- Adjust pricing or minimum callout fee
- Reduce scope or exclusions
- Update templates for repeat jobs
For pricing system upgrades, read Service Business Pricing Mastery 2026.
Where Toolfy fits
Toolfy captures job costs and invoice totals so you can see margin without spreadsheets. Start a free trial to track profit by job type.
FAQ
Should I include overhead in the calculator? Track overhead separately and ensure your target margin covers it.
What if a job runs over time? Log the actual hours and update your templates for next time.
How often should I review margins? Weekly for active jobs, monthly for pricing updates.
⚠️ Important Disclaimer
This guide is for general informational and educational purposes only. It does not constitute professional advice of any kind (legal, financial, tax, insurance, or otherwise).
Before making business decisions: Consult with qualified professionals (solicitors, accountants, insurance brokers, etc.) who can assess your specific circumstances. Laws, regulations, and industry standards change frequently and vary by location and situation.
Toolfy and the article authors accept no liability for decisions made or actions taken based on information provided in this guide. You are solely responsible for ensuring compliance with all applicable laws and regulations.
Frequently Asked Questions
How do I calculate profit per job?
What margin should trades target?
Is markup the same as margin?
Need this workflow in Toolfy?
Spin up the exact checklist, scripts, and automations from this article inside your workspace.
Related Articles
Bank Holiday Callout Pricing: How Much to Charge in 2026
The 2x-3x multiplier math, how to justify premium rates, and what UK tradespeople actually charge for emergency callouts on bank holidays.
Customer Asking for Mates Rates: How to Respond
The psychology of discount requests, boundary-setting scripts, when to say yes vs no, and how to protect your pricing power with friends and family.
Price book template for plumbers and electricians (starter list)
A practical price book template for common plumbing and electrical jobs, plus a simple method to build your own fixed-price menu.