A high job value doesn't automatically mean a good job. Only once material costs, your own work hours at your hourly rate, and travel costs are subtracted does the real profit appear – and whether the effort was worth it.
Formula: Profit = job value − (material costs + work hours × hourly rate + travel costs)
The profit margin puts this profit in relation to the job value, showing what percentage of the job value is actually left as profit.
Example calculation
| Item | Amount |
|---|---|
| Job value | €2,500 |
| Material costs | €400 |
| Work hours (12 h × €45) | €540 |
| Travel costs | €60 |
| Total costs | €1,000 |
Profit: €2,500 − €1,000 = €1,500 (profit margin 60%). This job already breaks even at a job value of €1,000.
