Enter revenue and cost to see gross margin, markup, and profit per job — the two numbers trades pros most often confuse.
Free to use with no account. When you want to send the result by text, take a card payment, or keep a record of every job, the same numbers carry straight into Glo Invoice.
The formula. Gross margin = (revenue − direct cost) ÷ revenue. Direct cost means the parts, materials, subcontractor pay, and labor hours tied to that job — not rent or insurance.
Worked example. A $1,000 job with $400 of parts and $250 of labor leaves $350, a 35% gross margin. Overhead comes out of that $350, so the job's net profit is lower.
Gross margin vs net profit. Gross margin measures the job. Net profit measures the business after overhead — truck, insurance, software, phone, unpaid admin hours.
Common mistakes. Leaving your own labor out of cost (which makes every job look profitable); forgetting card processing fees on paid invoices; averaging margin across jobs instead of checking the ones you repeat most.
Frequently asked questions
What is a healthy margin for a service business?
It varies by trade and by how much material you carry. Compare your own jobs against each other first — the useful signal is which work types earn least, not a national benchmark.
Why is my margin fine but my bank account isn't?
That gap is usually receivables and overhead, not pricing. Check how many invoices are sitting unpaid past their due date.
Does margin include tax I collect?
No. Sales tax collected is not revenue — it is money you hold for the state.
