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Profit Margin Calculator

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

Labor

% of revenue allocated to overhead

Results

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

Roofing Industry Benchmarks

Industry Avg Gross Margin 25%
Top Performers 30%+
Repair/Service Target 35 – 50%
Replacement Target 20 – 30%
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. Include all line items: materials, labor, removal, and any fees.

2. Enter materials cost. Your wholesale cost for shingles, underlayment, flashing, nails, ridge cap, and any other materials. Use what you actually paid, not list price.

3. Fill in labor details. Enter crew size, total hours on the job, and your hourly labor cost. This should be your burdened rate (wages + payroll taxes + workers comp), not the billing rate.

4. Add removal and disposal costs. Include dumpster rental, dump fees, and labor for tear-off if applicable.

5. Set your overhead percentage. Most roofing companies run 25-30% overhead. This covers rent, insurance, trucks, office staff, software, and marketing. If you do not know yours, 28% is a solid 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 (revenue). Markup is profit as a percentage of your cost. Confusing the two is one of the most common pricing mistakes in the trades.

Labor_Cost = Crew x Hours x Hourly_Rate

Total_Cost = Materials + Labor + Disposal + (Revenue x Overhead%)

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 roofing?
The industry average gross margin for roofing companies is around 25%. Well-run shops hit 30% or higher. Repair and service work typically targets 35-50% gross margin, while full roof replacements target 20-30%. If your gross margin is consistently below 20%, 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 $8,000 and you sell it for $12,000, your profit is $4,000. Your margin is 33% ($4,000 / $12,000) and your markup is 50% ($4,000 / $8,000). They describe the same profit from different reference points.
How do I calculate overhead for a roofing job?
Overhead includes all costs to run the business that are not tied to a specific job: rent, insurance, vehicle payments, office staff, software, marketing, and utilities. Most roofing companies allocate overhead as a percentage of revenue, typically 25-30%. To find yours, divide total annual overhead costs by total annual revenue.
Why is my roofing profit margin so low?
Common causes of low roofing margins include underpricing labor, insufficient material markup, not tracking overhead allocation, weather delays eating into labor budgets, and underestimating waste. Use this calculator to test different pricing scenarios and find where you are leaving money on the table.

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