How it works
Direct costs = labor hours × loaded labor cost + materials + other direct costs. Gross profit = price − direct costs. Gross margin = gross profit ÷ price. Overhead isn’t included; compare against the labor rate you need to cover it.
Frequently asked questions
What's gross profit on a job?
The price minus the direct costs of that job: technician labor, materials and other job-specific costs such as permits or equipment rental. Overhead comes out after that.
What labor cost per hour should I use?
The technician's loaded cost per hour: wage plus payroll taxes and benefits, not the rate you charge the customer.