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Profit Margin Calculator

Enter job revenue and costs, see gross margin, markup %, and profit. Pre-loaded with electrical industry benchmarks.

Labor

% of revenue allocated to overhead (30-45% typical)

Results

Gross Profit
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Gross Margin
--
Markup
--
Cost per $1 Revenue
--

Electrical Industry Benchmarks

Industry Avg Gross Margin55%
Top Performers60%+
Service & Repair Target55 – 65%
New Construction Target35 – 50%
Your Gross Margin--
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How to Use This Calculator

1. Enter your job revenue. This is the total amount you charge the customer including all line items.

2. Enter parts and materials cost. Your wholesale cost for wire, breakers, boxes, conduit, fittings, and components.

3. Fill in labor details. Number of techs, total hours, and your burdened hourly cost (wages + payroll taxes + workers comp).

4. Add consumables and overhead. Consumables are tape, connectors, wire nuts, etc. Overhead is typically 30-45% for electrical contractors.

How Profit Margin Works

Labor_Cost = Techs x Hours x Hourly_Rate

Total_Cost = Parts + Labor_Cost + Consumables + (Revenue x Overhead%/100)

Profit = Revenue - Total_Cost

Gross_Margin = (Profit / Revenue) x 100

Markup = (Profit / Total_Cost) x 100

Frequently Asked Questions

What is a good profit margin for electrical contractors?
The industry average gross margin is around 55%. Top shops hit 60%+. Service work targets 55-65%, new construction targets 35-50%.
What is the difference between margin and markup?
Margin is profit as % of revenue. Markup is profit as % of cost. A $5,000 job with $3,000 cost = 40% margin and 66.7% markup.
How do I calculate overhead for an electrical job?
Divide total annual overhead (rent, insurance, vehicles, office, software, marketing) by total annual revenue. Most electrical companies run 30-45%.
Why is my electrical profit margin so low?
Common causes: underpricing labor, insufficient parts markup, untracked overhead, scope creep, and free diagnostics.

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