EXPRESSION
Profit = (Subtotal + Overhead) × (Profit% ÷ 100)
DESCRIPTION
Contractor margin computed on top of Subtotal + Overhead, matching most professional bidding conventions.
VARIABLES
| Symbol | Meaning |
|---|---|
| Subtotal | direct-cost total |
| Overhead | Subtotal × Overhead% |
| Profit% | your target margin percentage |
WORKED EXAMPLE
Subtotal $21,000 · Overhead $3,150 · Profit 10% Profit = (21,000 + 3,150) × 0.10 = 24,150 × 0.10 = $2,415
NOTES
Profit is applied on cost + overhead (not on Subtotal alone) so overhead is not eroded. This is the industry-standard chain.