Free Profit Margin Calculator
Calculate your net and gross profit margins. Enter your revenue and costs to see your true profitability and compare against industry benchmarks.
This profit margin calculator helps electricians understand their true profitability. Enter your total revenue and costs to instantly see your gross and net profit margins. Use the presets to compare typical margins for different business types, and benchmark your results against industry averages.
Profit Margin Calculator results
Fill in the details and select Calculate to see your figures.
Win more of the jobs you quote.
Tradehand is the software your trade business runs on, with an assistant that answers every call and message, sends your quotes the same day and chases them until they land. The first £10,000 Tradehand collects for a business carries no Tradehand fee. After that, Tradehand earns 5% of collected invoice payments. No monthly fee, setup fee, card fee or contract.
Get startedHow to use the Profit Margin Calculator
- 1Enter your total annual revenue: the full amount invoiced to customers.
- 2Add your material costs: everything you spend on parts, cables, fixtures, and supplies.
- 3Enter your labour costs: wages paid to employees or subcontractors (exclude your own drawings).
- 4Add your overhead costs: van, insurance, tools, accountancy, marketing, and other fixed costs.
- 5Review your gross and net margins. Aim for a net margin above 15% for a healthy business.
How the Profit Margin Calculator works
Margin measures profit as a share of the price you charged. Not a share of your costs. That distinction is where most trades lose money: a 50% markup is only a 33% margin.
- You invoice a job at £1,500. Materials, labour and overheads cost you £1,050.
- Profit = £1,500 − £1,050 = £450.
- Margin = £450 ÷ £1,500 × 100 = 30%.
- The same £450 profit on £1,050 of cost is a 43% markup. Always quote from the price, not the cost.
Include your overheads (van, insurance, tools, admin) before you call it profit. A 'gross margin' that ignores overheads flatters the number and hides a loss-making job.
Typical UK benchmarks
| Trade businesses reporting lower-than-expected profits | 52% of members who saw rising costs reported lower-than-expected profits or a loss (FMB State of Trade Survey, Q4 2024) |
| Trade businesses seeing material costs rise | 54% saw material costs increase quarter-on-quarter, squeezing margin further (FMB State of Trade Survey, Q4 2024) |
Disclaimer
This tool gives an estimate for general guidance only, based on typical UK figures and the details you enter. It is not a formal quote, survey, or professional advice. Always confirm with a qualified tradesperson before relying on any figure, as regional prices, site conditions, and current standards vary.
You do the job, Tradehand handles everything around it.
Your assistant sends the quotes, chases the invoices, books the work and keeps your customers updated. The first £10,000 Tradehand collects for a business carries no Tradehand fee. After that, Tradehand earns 5% of collected invoice payments. No monthly fee, setup fee, card fee or contract. One office hire costs about £25,000 a year, whether the invoices land or not.
Source: Office manager salary, National Careers Service
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