Order profit calculator
What did one order actually earn you? Put in what the client paid and what the order cost, and see the profit, the margin and the markup. GST is taken out first, because it was never yours.
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Why work it out one order at a time
A month can look fine while one order inside it lost money. When every rupee is added up together, the order that cost more than it paid hides behind the ones that did well — and you quote the same way for it next time.
Worked out per order, you can see which kind of job pays, which client always comes in short, and where the price was too low. That is the number to have in front of you before the next quotation.
Questions people ask
How do I calculate profit on an order?
Take what the client actually paid, remove any GST inside it, then subtract everything you spent on that order — material, labour, outside work, transport. What is left is the profit on that order.
How do I calculate profit margin?
Divide the profit by what you earned from the order (the payment without GST), and multiply by 100. Rs 43,000 profit on Rs 1,85,000 earned is a margin of about 23%.
What is the difference between margin and markup?
Margin compares profit with the selling price; markup compares it with your cost. The same order always shows a higher markup than margin — Rs 43,000 on Rs 1,42,000 of cost is about 30% markup, but 23% margin.
Is the GST I collect part of my profit?
No. GST is collected for the government and passed on, so it comes out of the payment before profit is counted. Counting it as profit makes every taxed order look better than it was.
Should rent and electricity go into one order’s cost?
Not into a single order. Rent, the electricity bill and salaries are paid whether or not that order exists, so they belong to the month. Work out each order’s profit first, then take the month’s bills off the month’s total — which is exactly how Dhandau keeps them apart.