Use this calculator to compare a job or project budget with the actual income, direct costs and overheads. Enter figures on one stated basis. The result shows contribution, profit, margin, markup and the main variances.
What to enter
Enter budget and actual income, direct costs and allocated overheads. Use amounts that cover the same work and period. Choose one consistent income basis before calculating.
What the result means
Profit is income less direct costs and overheads. Margin compares profit with income; markup compares profit with the combined direct costs and allocated overhead used for this job. With income of £12,500, direct costs of £6,800 and overhead of £1,100, profit is £4,600 and markup is 58.23% of the £7,900 combined cost base. A loss remains a negative result rather than being hidden as zero.
Worked example
If actual income is £12,500, direct cost is £6,800 and overhead is £1,100, the calculator shows actual profit of £4,600. Compare that with the budget before deciding whether the issue is price, scope, cost or delivery.
Limitation and next step
This is a management indicator, not a tax calculation or a final contract valuation. Compare it with the quote and approved changes before relying on it.
Important
General information only. It is not a tax, accounting, legal or financial determination for a particular business.
Next step
Use the result to decide what needs explaining in the quote, costs or scope before you rely on the margin.
Sources and review
- Evidence check date: 5 November 2026.