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Profit Margin Calculator

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

Labor

Burdened rate (wages + taxes + comp)

Paint, primer, tape, drop cloths, supplies

% of revenue for insurance, vehicle, admin

Results

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

Painting Industry Benchmarks

Industry Avg Gross Margin 40%
Top Performers 50%+
Interior Residential Target 40 – 50%
Exterior / Commercial Target 30 – 40%
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 for the painting job, including labor, materials, and any fees.

2. Fill in labor details. Enter the number of painters, total hours, and your burdened hourly rate. The burdened rate includes wages, payroll taxes, and workers comp -- not your billing rate to the customer.

3. Add materials cost. Include paint, primer, tape, drop cloths, caulk, and any other supplies used on the job. Use your actual cost, not the retail price.

4. Set your overhead percentage. Most painting companies run 10-15% overhead. This covers insurance, vehicle costs, office expenses, marketing, and admin. If you are unsure, 12% is a reasonable starting point.

How Profit Margin Works

Margin and markup describe the same profit from different angles. Margin is profit as a percentage of the selling price. Markup is profit as a percentage of your cost. Confusing the two is one of the most common pricing mistakes in the painting trade.

Labor_Cost = Painters x Hours x Hourly_Rate

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

Profit = Revenue - Total_Cost

Gross_Margin = (Profit / Revenue) x 100

Markup = (Profit / Total_Cost) x 100

For painting contractors, materials typically represent 15-25% of revenue, labor 30-50%, and overhead 10-15%. The remainder is your profit. Aiming for a 40%+ gross margin on interior residential work keeps your business healthy and sustainable.

Frequently Asked Questions

What is a good profit margin for painting contractors?
The industry average gross margin for painting contractors is 35-45%. Top-performing shops hit 50% or higher. Interior residential work typically targets 40-50% gross margin, while commercial and exterior work targets 30-40%. If your gross margin is consistently below 35%, you are likely underpricing your work.
What is the difference between margin and markup?
Margin is profit as a percentage of revenue (selling price). Markup is profit as a percentage of cost. For example, if a job costs $1,200 and you sell it for $2,000, your profit is $800. Your margin is 40% ($800 / $2,000) and your markup is 66.7% ($800 / $1,200). They describe the same profit from different reference points.
How much should I charge for a painting job?
Start with your costs: materials (15-25% of revenue), labor (30-50% of revenue), and overhead (10-15% of revenue). Add your target profit margin on top. If your costs total $1,500 and you want a 40% margin, divide costs by 0.60 to get your price: $2,500. Always verify against local market rates.
Why is my painting profit margin so low?
Common causes of low painting margins include underestimating prep time, not marking up paint adequately, absorbing material cost increases, scope creep on color changes and touch-ups, and underpricing labor. Use this calculator to test different pricing scenarios and find where you are leaving money.

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