Is this job actually profitable?
Know your real margin before you quote. Every cost counts.
Your job numbers
Start with the example, or make it yours.
The quote
Enter costs below excluding any GST you can claim back. Include GST in costs where it is not recoverable.
Materials & labour
Use fully loaded hourly costs, including relevant super, leave and employment costs. Include travel time in hours.
Travel & other costs
Your profit goal
After materials, labour, travel and allocated costs.
Where the money goes
$8,923 including 10% GST, if applicable.
What if the job takes longer?
Your margin would move from 33.2% to 24.0%, leaving $2,042 job profit.
Assumes extra owner labour only, at $65/hour.An estimate to help you quote. This is before income tax and does not guarantee the final profitability of a job.
How we work it out.
The formula
Job cost = materials + your labour + employee labour + vehicle travel + other expenses + allocated overhead.
Profit = revenue excluding GST − job cost.
Margin = profit ÷ revenue × 100.
Target quote = job cost ÷ (1 − target margin ÷ 100).
Profit per owner hour = profit ÷ your hours. This is surplus after your entered labour cost, not your total hourly pay.
The assumptions
All figures are AUD. The GST checkbox removes 10% GST from the quote for fully taxable sales. Costs must exclude recoverable GST; mixed and GST-free supplies need separate treatment.
The $0.80/km vehicle cost and 30% margin are editable example assumptions. They are not ATO deduction rates or recommended industry margins.
Your hourly costs should include employment on-costs. Add overhead explicitly; the tool cannot know costs you leave out.
Australian sources
MoneySmart — GST calculator ↗10% GST for taxable sales; GST-inclusive amounts are divided by 1.1 to obtain the exclusive amount.
ATO — Calculating GST on purchases ↗Explains the GST component of an inclusive purchase price.
A few good questions.
Is margin the same as markup?
No. Margin divides profit by revenue; markup divides profit by cost. A $1,000 cost with a 30% margin needs a quote of about $1,429, rather than $1,300.
Have you included my wage in the cost?
Yes. Your hours multiplied by your hourly cost are included before job profit is calculated. Enter an hourly cost that pays you fairly for your time.
Does this calculate my tax?
No. The profit estimate is before income tax. GST treatment is simplified and does not calculate your BAS or tax liability.
What should we build next?
Tell us about a decision you wish was easier to work out.
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