Know Your Real Profit Before Leaving the Job Site
Whether you run a small contracting crew, provide cleaning services, or manage event setups, knowing your actual net profit — not just your invoice total — is critical for running a sustainable business.
This calculator takes your total project revenue and subtracts job site expenses (meals, fuel, materials, and other costs) to show your net profit and expense ratio in real time. A high expense ratio is a signal to renegotiate rates or find ways to cut costs on recurring jobs.
For tax purposes, business expenses like fuel, materials, and work-related meals are generally deductible. Keep receipts for every expense and log them by job site so you're ready for tax season.
If you need to include labor costs as well, add them to the "Other Expenses" field to see your true bottom line after all costs.
Frequently Asked Questions
Yes. You can deduct actual vehicle expenses (including fuel, insurance, and depreciation proportional to business use) or use the IRS standard mileage rate (67 cents per mile in 2024). Keep a mileage log with dates, destinations, and business purposes.
If your expense ratio consistently exceeds 70-75% (excluding labor), it may be time to raise rates. Consider renegotiating long-term contracts annually to account for rising material and fuel costs.