Tool 05 · Profit
Construction Job Profit Variance Calculator
Compare estimated and actual direct costs to see the gross profit, margin, and cost category behind a job's variance.
- Math shown
- Local calculation
- No signup
DecisionWhere did this job's expected gross profit move?
Live calculator
Enter your numbers
Your result
Actual gross profit$17,500.00
- Actual gross margin
- 23.3%
- Profit below estimate
- $4,500.00
- Direct-cost overrun
- $4,500.00
Planning estimate based only on the values above. Inputs remain in this browser and are not submitted.
Method
How the calculation works
- Expected gross profit = revenue − estimated direct costs
- Actual gross profit = revenue − actual direct costs
- Profit variance = expected profit − actual profit
Worked example
A $75,000 job with $53,000 estimated direct cost expected $22,000 gross profit. If actual direct cost reaches $57,500, gross profit falls to $17,500.
Read the full methodologyKnow the boundary
What this estimate does not decide
- Unapproved change work and incomplete cost postings can distort the comparison.
- Gross profit still has to recover any company overhead not allocated to the job.
Questions
Bid vs. actual FAQ
Is a positive cost variance good or bad?
This tool labels cost overrun as a positive dollar amount when actual cost exceeds estimate; it is profit leakage, not favorable performance.
Should I include overhead?
Include job-specific and allocated overhead only if the estimate and actual cost records treat it consistently.