How to know the real profit of a remodeling job

A job can look busy and still lose money. The only way to know is to put the same three numbers side by side on every job: what it brings in, what the crew's hours cost and what you spent on materials.

The method

1. Revenue. The contract value, or the invoiced amount excluding sales tax.
2. Labor. Hours worked on the job multiplied by pay, taken from the timesheets.
3. Materials and other expenses. Every confirmed receipt for the job: lumber, fuel, rentals, permits.

Profit = revenue − labor − materials and other expenses.

Margin = profit ÷ revenue.

Worked example

Example. Round numbers for illustration, not a real customer.

Common mistakes

• Receipts never logged. A receipt in the truck is cost that is missing from the job, so the profit looks better than it is.
• Unpaid hours. Hours the crew worked but that did not reach the timesheet leave labor too low.
• Counting sales tax as revenue. Sales tax is not yours. Use the contract value or the invoiced amount excluding sales tax.

How RelioHub helps

Every project in RelioHub shows its profit and margin: contract value (or, without one, the invoiced amount excluding sales tax) minus labor from closed timesheets minus confirmed expenses. Snap or upload receipts, AI reads the amount, tax, date and merchant, and you check them and confirm. Job profit is visible to managers only, and labor is an estimate based on closed timesheets.See how job profit works and how expenses and AI receipt reading work.