This calculator models whether a price increase improves profit even after accounting for client losses. It compares your current situation against a post-increase scenario.t rates.
Purpose:
This calculator is designed specifically for builders and construction businesses to calculate true project profit including materials, subcontractors, labour hours, equipment hire, project overheads, and contingency.
Tips for Ongoing Use:
Bookmark this page (Ctrl+D or Cmd+D) for quick access.
- Model before annual price reviews
- Test different increase and churn combinations
- Use to build confidence before difficult pricing conversations
- Revisit assumptions based on actual churn after increases
Enter the contract value, then add materials, subcontractor costs, labour hours and rates, equipment costs, project duration, weekly overhead, and contingency percentage. The calculator shows total profit, margin, and profit per week.
Understanding Basics:
Builder margins must cover direct costs, project-specific overheads, contingency for variations, and profit. A margin under 10% leaves no room for cost overruns.
Benefits for SMEs:
- Quote accurately on complex projects
- Understand true weekly profitability
- Identify which project types work best for your business
- Avoid jobs that lose money
Considering building an internal finance team?
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