How do I figure percent complete?

Most contractors use cost-to-cost: cost so far ÷ total estimated cost. You can also use physical progress (units installed, milestones) if that tracks the work better.

What's a good project margin?

It depends on the trade and the risk. Many service and construction businesses aim for 15–25% after overhead; fixed-price work should carry more cushion than cost-plus.

Why does billing matter if the profit is the same?

Cash. Underbilling means you've paid for labor and materials the client hasn't paid you for yet. On a big job that gap can be the difference between making payroll and not.

Business & Pricing

Project Profitability Calculator

Is this job actually making money? Budget vs. actual by cost category, a forecast at completion, over- and under-billing, and what it would take to hit your target margin.

Ben / Reviewed Sep 27, 2026 / v2.0.0

Results

Showing the numbers you calculated

Heads up

The forecast is $10,725.00 over budget — mostly labor ($3,750.00 over).
To reach a 20% margin you'd need $10,656.25 more in revenue (change orders or price), or that much less cost.
You've billed $16,250.00 less than you've earned (underbilled) — a receivable to catch up on, and a cash-flow drag.

Profit at completion: $46,475.00; 16.90% margin (forecast)
Budgeted profit: $57,200.00; 20.80% margin
Cost at completion: $228,525.00; Budget $217,800.00
Spent so far: $174,075.00
Gross profit per labor hour: $53.80; Before overhead
Revenue for your target margin: $285,656.25; $10,656.25 more than you have
Over (under) billed: ($16,250.00); Earned so far: $206,250.00

Budget vs. actual

Variance = budget − cost at completion: positive is under budget.

Swipe the table sideways to see all 5 columns.

Budget vs. actual
Category	Budget	Spent so far	At completion	Variance
Labor	$90,000.00	$71,250.00	$93,750.00	($3,750.00)
Materials	$60,000.00	$48,000.00	$63,000.00	($3,000.00)
Subcontractors	$35,000.00	$30,000.00	$38,750.00	($3,750.00)
Other direct costs	$13,000.00	$9,000.00	$12,250.00	$750.00
Overhead (10% of direct costs)	$19,800.00	$15,825.00	$20,775.00	($975.00)
Total cost	$217,800.00	$174,075.00	$228,525.00	($10,725.00)

What this does

A job can look fine halfway through and still lose money — overruns hide until the end. This compares what you budgeted with what you've spent, forecasts where the job will land, and flags it early.

It also checks your billing against the work done (over- or under-billing) and tells you what the price would need to be for the margin you wanted.

How the math works

revenue = contract price + approved change orders
cost = labor (hours × rate) + materials + subs + other + overhead
profit = revenue − cost

For a job in progress, the forecast finishes the remaining work one of two ways:

at budget:       actual so far + budget × (1 − % complete)
at current pace: actual so far ÷ % complete

"At budget" assumes the overruns so far were one-offs. "Current pace" assumes they'll keep happening — usually the more honest guess.

earned revenue = revenue × % complete
over (under) billing = billed to date − earned revenue

Overbilling isn't free money: it's a liability until the work catches up. Underbilling is work you've done and haven't been paid for yet.

Check my math: a worked example

A $275,000 job (including $25,000 of change orders), 75% complete.

Budget: $217,800.00 of cost for $57,200.00 of profit (20.80%).
Spent so far: $174,075.00. Finishing the rest at budget puts total cost at $228,525.00.
Profit at completion: $46,475.00 (16.90%). The biggest overrun is labor, $3,750.00 over.
Earned so far: $206,250.00 vs. $190,000.00 billed — $16,250.00 underbilled.
For a 20% margin at this cost, the job would need $285,656.25 of revenue.

These numbers come straight from the calculator using its example inputs — if the math ever changes, this example changes with it.

Mistakes I see a lot

Leaving overhead out. A job that covers its direct costs can still lose money once rent, trucks, and admin are counted.
Using raw wages for labor. Payroll taxes and benefits add 20–40%.
Waiting until the end to compare against budget. Overruns are cheapest to fix at 30% complete.
Doing extra work before the change order is signed. Unapproved change orders aren't revenue.

Questions people ask

How do I figure percent complete?: Most contractors use cost-to-cost: cost so far ÷ total estimated cost. You can also use physical progress (units installed, milestones) if that tracks the work better.
What's a good project margin?: It depends on the trade and the risk. Many service and construction businesses aim for 15–25% after overhead; fixed-price work should carry more cushion than cost-plus.
Why does billing matter if the profit is the same?: Cash. Underbilling means you've paid for labor and materials the client hasn't paid you for yet. On a big job that gap can be the difference between making payroll and not.

Assumptions and limits

Revenue is the contract price plus approved change orders. Put the budgeted cost of change orders in the budget figures too.
Labor is hours × one burdened cost per hour (wages, payroll taxes, benefits).
Overhead is allocated as a percentage of direct costs, the same way for budget, actual, and forecast.
Forecast at completion: with "remaining at budget," each category is actual so far + its budget × the share of work left; with "current pace," it's actual so far ÷ percent complete. A finished project (percent complete blank or 100%) uses actuals.
Earned revenue for the billing check is revenue × percent complete; billed minus earned is over (+) or under (−) billing.
Percent complete applies to the whole project — categories are assumed to progress together.

Ben’s notes on this

Related calculators

Hourly Billing Rate
The hourly rate you need to charge to pay yourself, cover your expenses, and make a profit — once you account for the hours you can't bill and the invoices that don't get paid in full.
Contribution Margin
What each sale really leaves you after its own costs, laid out as a contribution income statement — and which lever moves profit most: price, volume, or cost.
Employee True Cost
What an employee really costs you: pay, employer payroll taxes (with the real wage bases), benefits, and overhead — per year, per month, and per productive hour, plus the extra first-year hiring costs.
Break-Even Point
How many units you have to sell before you stop losing money — plus your margin of safety, what it takes to hit a profit goal, and profit at different sales levels.

Spot an error?

This is a public notebook and I do make mistakes. If a number looks off, tell me — I fix things and note the change in the changelog.

Disclaimer: Educational and planning use only. Results depend on what you enter and may not match your lender, your tax return, or professional accounting treatment. Informational content + opinions only — not tax/legal advice.

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