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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.

How to Use

1

Enter your total annual revenue — the full amount invoiced to customers.

2

Add your material costs — everything you spend on parts, cables, fixtures, and supplies.

3

Enter your labour costs — wages paid to employees or subcontractors (exclude your own drawings).

4

Add your overhead costs — van, insurance, tools, accountancy, marketing, and other fixed costs.

5

Review your gross and net margins. Aim for a net margin above 15% for a healthy business.

About This Calculator

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.

Frequently Asked Questions

What is a good profit margin for an electrician?
A healthy net profit margin for an electrician is typically 15-25%. Sole traders often achieve higher margins (20-30%) due to lower overheads, while firms with employees usually see 10-20%. Gross margins should be 40-55%.
What is the difference between gross and net margin?
Gross margin is your revenue minus direct job costs (materials and labour), expressed as a percentage. Net margin deducts all costs including overheads like van, insurance, and tools. Net margin is your true profitability.
How can I improve my profit margin?
Focus on three areas: increase your charge-out rate to reflect your skills and certifications, reduce material waste by ordering accurately, and control overheads by reviewing subscriptions and insurance annually.

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