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Project Profit Margin

Measure the margin and markup on a single project.

About Project Profit Margin

A project's profit margin is its profit divided by invoiced revenue, while markup compares the same profit against the cost of the work. Miscounting a bid's true cost inflates the apparent margin, so measuring actual versus estimated margin after each job catches bad estimating early.

Formula

Project Profit Margin

Project margin = (revenue - cost) / revenue x 100

project cost
All direct costs of delivering the job

Worked example

With the default values below, Project Profit Margin returns Project Gross Profit of $4,500.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Project revenueminimum 0
15,000
Project costminimum 0
10,500

Results

Project Gross Profit
$4,500.00
Profit Margin
30.00%
Markup
42.86%

Step by step

  1. 1Values used
  2. 2Project Profit Margin
  3. 3Project Gross Profit= 4,500.00
  4. 4Profit Margin= 30.00
  5. 5Markup= 42.86

Assumptions and limits

  • The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Project Profit Margin calculated?

Project margin = (revenue - cost) / revenue x 100 A project's profit margin is its profit divided by invoiced revenue, while markup compares the same profit against the cost of the work.

Why does Project Profit Margin matter?

Miscounting a bid's true cost inflates the apparent margin, so measuring actual versus estimated margin after each job catches bad estimating early.

What values do I need to enter?

This calculator takes 2 inputs: Project revenue, Project cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

Related Calculators

Project Profit Margin – Calculate Project Gross Profit