Construction Profitability Benchmark Calculator — Marawood Construction Accounting

How to calculate your cost of sales

Add up every expense that is a direct project cost for the trailing 12 months — field labour, subcontractor costs, materials, and equipment costs allocated to specific jobs. These costs exist only because you did the work. Revenue minus Cost of Sales equals your Gross Profit.

How to calculate your overhead rate

Add up every expense that is not a direct job cost for the trailing 12 months — office staff, rent, insurance, equipment payments not allocated to jobs, vehicles, software, marketing. Divide by total revenue. That percentage is your overhead rate.

Your Business Inputs

Trade / Contractor Type

Annual Revenue ? Total revenue billed for the trailing 12 months. Use your most recent fiscal year if trailing 12 is not available.

Cost of Sales / Direct Job Costs ? All direct project costs — field labour, subcontractors, materials, equipment costs allocated to jobs. Revenue minus Cost of Sales = Gross Profit.

Total Overhead Costs ? All G&A expenses that are NOT direct job costs — office salaries, rent, insurance, vehicles, software, marketing, owner draws coded to overhead.

Gross Margin vs. Benchmark

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Gross Margin

Your Overhead Rate

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Overhead Rate

Key Numbers

Assessment

Largest Overhead Driver at Your Revenue Level