Free Tool

Profit Margin Calculator

Two ways to use this. Plug in revenue and costs to see your current profit margin. Or set a target margin and see what you need to charge to hit it.

Mode A: Calculate your current margin

Job revenue (what you charged)

$100$1,500$20,000

Materials cost

$0$400$10,000

Labor cost (your pay + helpers)

$0$500$10,000

Allocated overhead (vehicle, insurance, software, marketing)

$0$150$2,000

Gross profit

$1,100

73% gross margin

Net profit

$450

30% net margin

Mode B: What should you charge?

Target net profit margin

5%25%50%

To hit that margin with your current costs, charge

$1,400

a 56% markup over total cost

Stop pricing on guesswork.

Kairvio's quote builder lets you save price templates that hit your target margin every time.

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Healthy margins for service businesses

Most service businesses target two margin numbers:

Gross margin (revenue minus direct costs of materials and labor): healthy is 50–70% for most service businesses, higher for labor-heavy services like cleaning.
Net margin (after overhead): healthy is 15–30% for established businesses. New businesses should aim for at least 10% to stay sustainable.

If your net margin is under 10%, you're either underpricing, over-spending on overhead, or under-utilizing your billable hours. Use this calculator and our service pricing calculator in tandem to find the gap.