Enter what you charged for your last job and what it actually cost, and this returns the real gross margin against industry benchmarks. Most painters find the number is lower than they expected, and the reason is usually one of three things.
Healthy painting businesses target 35–50% gross margin on labour, 20–30% on materials, 15% on access equipment, and 25% on overheads. Blended gross margin runs 38–45% on a typical residential repaint. Net margin (after fixed overheads) typically lands at 8–15%.
Real margin = (sell − total cost) ÷ sell × 100. Total cost includes labour at loaded cost rate, materials at buy price, access equipment, prelims, and per-job overheads. The Profit Reality Check tool walks you through this with the numbers from your last job.
Markup is added to cost (cost × 1.30 = "30% markup" = 23.1% margin). Margin is taken from sell (cost ÷ 0.70 = 30% margin). Painters who quote at "cost plus 30%" usually run 23% margins — and lose $100 per $1,000 of cost compared to a true 30% target.
Three common causes: (1) using markup math instead of cost-plus, (2) not loading the labour cost rate with statutory on-costs and leave, (3) not capturing all per-job overheads (vehicles, supervision, admin time). The tool exposes each.
Gross margin is per-job (sell minus direct cost). Net margin is annual (gross profit minus fixed overheads — rent, insurance, software, marketing, principal's wages). A painting business at 40% gross typically nets 8–15%.
Switch from markup to cost-plus pricing. Load the labour cost rate properly. Set separate margins per cost category. Buy materials in volume. Round material orders to container sizes. Use spray for broad surfaces only — interior trim is usually faster brush-and-roll.