What profit margin means
Profit margin is the share of the price you keep after costs. Gross margin subtracts only job costs; net margin also subtracts overhead.
Also called gross margin, margin.
Where it shows up in your business
A job can look profitable at gross margin and still lose money once overhead is counted. Price for the net margin you need, not just to cover materials and labor.
Work it out
- Free calculator: Profit margin calculator
- Money guide: Gross vs net margin
- Money: Money guides for contractors