What did that job actually pay?
Put in what you billed and what the job cost. See the five-line ledger, the margin, and what an hour of crew time brought in.
What you billed the client for the job.
Every hour on the clock, all crew added together.
Average hourly wage, before any burden.
Payroll taxes, workers comp, insurance and any overhead you load onto an hour of labor.
Pavers, plants, base, lumber, everything you bought for the job.
Rentals, dump fees, fuel, subs, anything else you paid out.
Gross margin 24.6%. Gross profit $4,826.
Sample job. Your numbers replace these.
Gross margin
24.6%
Margin is profit as a share of what you billed. Markup, profit as a share of cost, would read 32.6% on these same numbers. They are not the same number.
| Invoice total | $19,650 |
|---|---|
| Burdened laborhours × wage × (1 + burden) | $5,824 |
| Materials | $9,000 |
| Equipment, dump, other | $0 |
| Gross profit | $4,826 |
- Burdened cost per crew hour
- $56.00
- Base wage plus the burden.
- Revenue per crew hour
- $188.94
- Invoice total over crew hours.
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How it is figured
Three lines of arithmetic.
- Burdened labor is crew hours times base wage times one plus your burden. The burden is everything an hour of labor costs you beyond the wage.
- Gross profit is the invoice total minus burdened labor, materials, and equipment, dump and other costs. It is before overhead you do not charge to a job, so it is not what you keep.
- Gross margin is gross profit divided by the invoice total. Markup divides by cost instead, which is why a job that made money always shows a bigger markup than margin.
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Burdened labor and job margin, job by job, on the Build and Scale plans.
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