Free Calculator
Business profit margin calculator: a whole month, not one job
Enter your monthly revenue and costs and see your net profit margin update in real time. No signup, no credit card, and nothing is sent to a server, all calculations happen right here in your browser.
Your monthly numbers, results update instantly as you type.
Revenue
$
Labor Costs
$
%
Applied to wages above, covers FICA, FUTA, SUTA, workers comp.
$
Labor total
$8,890
Materials & Supplies
$
%
Markup is for your reference and does not affect the margin calculation.
Vehicle & Equipment
$
$
$
Vehicle total
$900
Overhead
$
$
$
$
$
$
Overhead total
$4,050
Your Results
Updates in real time, nothing is saved
Monthly Revenue
$20,000
Total Costs
$16,340
Net Profit
$3,660
Net Margin
18.3%
Getting there, target 15-25%
Gross Margin
Revenue minus labor + materials 43.0%
Revenue minus labor + materials 43.0%
Revenue Per Dollar Spent
$1.22
How to improve your margin
- Raise prices on jobs where you hold the most value and the least competition
- Negotiate materials costs or switch to a supplier with a volume discount
- Reduce drive time per stop by grouping jobs by neighborhood or day
- Add recurring service agreements to smooth revenue and lower acquisition cost per dollar billed
Price your next quote at this margin in Claver. Your customer approves it on their phone and pays a deposit.
Start for $1What a profit margin calculation should include
Most service business owners know their revenue and have a rough sense of what labor costs, but margin slips away in the categories that stay invisible until the bank account runs low.
- Total revenue. All income from completed jobs and contracts in the measurement period, including service, parts, and any add-on fees
- Cost of labor. Wages, payroll taxes, workers comp, and benefits for field techs, since labor is usually the largest line
- Cost of materials and supplies. Parts and consumables that go directly into jobs, tracked separately from overhead
- Vehicle and equipment costs. Fuel, maintenance, lease payments, insurance, and depreciation on trucks and tools
- Overhead expenses. Office rent, software subscriptions, advertising, licensing, insurance, and owner salary
- Target net profit. The dollar amount or percentage the owner wants to retain after all costs, which is what the calculator solves against the inputs
- One-time vs recurring split. What share of revenue is recurring service agreements versus one-time jobs, since the mix affects the long-term health of the margin
- Owner compensation policy. Whether the owner takes a market-rate salary or draws on profit, since that decision changes what "net margin" means for the business
Related tools for owners
Customer lifetime value calculator
What one customer is worth over the years they stay with you, from revenue per visit, how long they stay, and your margin.
Dispatch schedule template
A live day board. One column per tech, hour blocks, status flags, and a list of callbacks at the bottom.
Field service report template
Test readings, parts, and labor, with a sign-off line for the customer. Prints as a PDF.
Keep the numbers when the job is booked
Inside Claver the same estimate becomes the quote you send, and the quote becomes the invoice you get paid on, so nobody retypes a price between the driveway and the bank.
Start for $1$1 for 14 days, then $19/mo. Card required. Cancel any time.
Your margin is half of what your business is worth. Turn it into a sale price with our service business valuation calculator.
Profit margin calculator FAQ
What is a good profit margin for a service business?
Most profitable service businesses target a net margin between 15 and 25 percent, though the right number depends on the trade, region, business model, and how much the owner pays themselves on top of operating profit.
Is this calculator really free?
Yes, the calculator is free with no signup, no credit card, and no data stored on a server, so the revenue and cost numbers stay on the device that filled them in and never leave the browser.
Can Claver track margins on every job?
Yes, on the Crew plan Claver tracks job costs against the quoted price on every work order, so margins are visible in real time without manual calculations or end-of-month reconciliation in a spreadsheet.