What does the Invoice & Job Profit Calculator do?

Calculate profit margin and markup on jobs. Add VAT and generate invoice total. All calculations are performed in your browser using official UK rates and thresholds.

Is this suitable for my business?

This calculator provides general estimates based on standard UK business rates and rules. Every business is different — consult your accountant for advice specific to your circumstances.

Does this use 2025/26 tax rates?

Yes. All rates and thresholds are based on the current 2025/26 UK tax year. Corporation Tax main rate is 25% for profits over £250,000, with a 19% small profits rate.

Invoice & Job Profit Calculator

Calculate profit margin and markup on jobs. Add VAT and generate invoice total.

Last updated: April 2026 · Source: GOV.UK – Invoicing and Taking Payment

Job Revenue (net)

Materials

Labour

Overheads

VAT registered (add 20%)

Profit

£1,000.00

Margin

20.00%

Markup

25.00%

Invoice Total

£6,000.00

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Invoice profit analysis breaks down each invoice into its component costs to reveal the true profit earned. Start with the invoice total (excluding VAT, which is collected on behalf of HMRC and is not your income). Deduct direct material costs—the actual cost of goods, raw materials, or supplies consumed in fulfilling the order. Then deduct direct labour—wages or subcontractor fees directly attributable to this job, including employer NI and pension on those wages.

Next, allocate a share of overheads: rent, utilities, insurance, software, vehicle costs, and administrative salaries that are not directly tied to one job but support all work. Common allocation methods include a percentage of direct labour hours, a flat rate per job, or a proportion based on revenue. The remaining figure after all deductions is your net job profit.

Two related metrics give context: Profit margin (%) = Net profit ÷ Invoice total × 100, showing what percentage of revenue you keep. Markup (%) = Net profit ÷ Total costs × 100, showing the premium charged above costs. These differ—a 25% markup equates to a 20% margin. Tracking profit per invoice over time reveals which clients, services, or project types are most (or least) profitable, enabling better pricing decisions.

Profit analysis on a £4,800 landscaping invoice

Invoice total (ex-VAT): £4,800.
Materials (turf, soil, plants, paving): £1,650.
Labour (subcontractor 3 days at £180): £540.
Overhead allocation (vehicle, insurance, tools): £480.
Net profit: £4,800 − £1,650 − £540 − £480 = £2,130. Margin: 44.4%. Markup: 79.9%.

Source: GOV.UK – Invoicing and Taking Payment

Frequently Asked Questions

What does the Invoice & Job Profit Calculator do?: Calculate profit margin and markup on jobs. Add VAT and generate invoice total. All calculations are performed in your browser using official UK rates and thresholds.
Is this suitable for my business?: This calculator provides general estimates based on standard UK business rates and rules. Every business is different — consult your accountant for advice specific to your circumstances.
Does this use 2025/26 tax rates?: Yes. All rates and thresholds are based on the current 2025/26 UK tax year. Corporation Tax main rate is 25% for profits over £250,000, with a 19% small profits rate.