This calculator vs. just checking if you still made money
The fastest job review there is: does the final invoice clear the bid? It catches an outright loss and nothing else -- a job can still turn a profit while quietly losing more than a tenth of its margin, and the line actually responsible is rarely the one that looks biggest on the invoice.
What each check actually tells you
Checking whether you still made money is one comparison: total cost against the bid price, after the fact. It answers exactly one question -- loss or no loss -- and nothing about where the job moved or which assumption to fix before quoting the next one like it. It needs no tool at all, which is exactly why it is the default.
This calculator takes the same estimate-versus-actual numbers and breaks them into labor hours, materials, and other costs, each measured on its own line. Add an hourly rate and it prices the labor-hour variance in the same currency as the other two, so the three lines can be ranked against each other honestly instead of comparing a raw hours count to two dollar figures. Add the bid price as well and it turns that into the actual margin swing -- the number "we still made money" cannot see.
| Estimate vs. actual | Estimated | Actual | Variance |
|---|---|---|---|
| Labor hours (at $55/hr) | 16 hrs | 20 hrs | +4 hrs -- $220 |
| Materials | $420 | $465 | $45 |
| Other costs | $80 | $95 | $15 |
| Job price | $2,000 | ||
| Profit | $620 (31.0%) | $340 (17.0%) | −$280, −14.0 points |
"Did we still make money?" answers yes -- $340 profit, still positive. It stops there. This calculator's own defaults show the fuller picture: margin fell from 31.0% to 17.0%, a 14-point swing, and of the $280 total cost increase, $220 of it -- nearly 79% -- is the 4 extra labor hours priced at the $55/hr rate, not the $45 materials overrun that looks like the bigger number sitting next to a bare "4" on an unpriced hours line. Revise the next quote's materials allowance on the strength of the flat check and the estimate stays wrong in the same place.
| Question | Where to answer it |
|---|---|
| Did the job clear the bid at all? | Either check answers this -- a flat total-vs-bid comparison is enough for a yes/no. |
| By how many points did the margin actually move? | This calculator's margin section, once a labor rate and bid price are entered. |
| Which single assumption is most worth revising before the next quote? | This calculator's ranked largest-movement line -- priced in dollars, not a raw hours count next to two dollar figures. |
| Is a labor overrun hiding behind a smaller-looking materials number? | This calculator, once an hourly rate is entered -- a flat total-vs-bid check cannot separate the two at all. |
This tool needs no account and no sign-in: it is a static page, the arithmetic runs in your browser, and nothing you type is uploaded.
Common questions
Isn't it enough to check whether the invoice cleared the bid?
It catches an outright loss and nothing else. On this calculator's own worked example -- 16 estimated hours running to 20, materials $420 to $465, other costs $80 to $95, a $55/hr rate and a $2,000 bid -- the job still nets $340 profit, down from an estimated $620. A flat before/after check sees a job that made money and stops there. It does not see that the margin fell from 31% to 17%, or which of the three lines actually did it.
Which line actually caused the overrun in that example?
Labor, by a wide margin, and it is the line a flat total hides best. Materials ran $45 over and other costs $15 over -- $60 combined, and the more visible number on an invoice. But 4 extra labor hours at $55/hr is a $220 overrun -- nearly 79% of the full $280 cost increase -- and it never appears as a dollar figure on the invoice at all unless someone prices the hours at the shop rate.
Why does a raw hours number get missed next to two dollar figures?
Because eyeballing a materials line, an other-costs line, and an hours line side by side means comparing $45 and $15 against a bare "4" -- different units read as if they were the same one. $45 looks bigger than 4 on the page, so materials gets blamed and the estimate gets revised on the wrong assumption. This calculator prices the hours at your rate before ranking, so the comparison is dollars against dollars, not dollars against a bare count.
Do I need to add a labor rate and bid price to use this?
No -- both are optional. Without them the calculator still reports the cost variance and flags the largest-moving line by its own unit. Adding an hourly rate converts the labor-hour variance into the same currency as materials and other costs, so the ranking is not comparing hours to dollars. Adding the job's bid price on top turns that into the margin swing -- the number that actually says whether "we still made money" is hiding a real problem.
Open the Job Margin Variance calculator to price your own job's hours, or read why a job costs more than estimated.