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How the margin math works
Material cost is the sum of qty × unit cost across every line on the job, regardless of status — once it's ordered, it's spent.
Labor cost is hours × rate. Use your burdened rate — wage plus payroll tax, workers' comp, and vehicle — not the wage you put on the paycheck.
Gross profit is quote − material − labor. Gross margin is profit ÷ quote. Break-even is the quote at which profit hits zero.
Overhead and taxes come out of gross profit. A job at 12% gross margin is usually a job you paid to do.