HOME/GLOSSARY/GROSS MARGIN
Glossary

Gross margin

Profit on a job after direct costs, as a percentage of the sale price.

Gross margin is revenue minus the direct costs of doing the job (labour and materials), expressed as a percentage of the sale. It tells you how much each dollar of work contributes before overheads. It’s not the same as markup.

Related
Markup & margin calculator Margin
Keep reading
GST (Goods and Services Tax) High-risk construction work (HRCW) Job costing JSA (Job Safety Analysis)
All glossary terms

Run your whole trades business in one place

traqR does quoting, scheduling, invoicing, timesheets and compliance — built for Australian trades. Try it free for 14 days, no credit card required.

Start free trial View pricing