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Contractor glossary

Net Profit: Definition for Contractors

What remains after all costs — job costs and overhead — are subtracted from revenue. It's the real bottom line, not the margin on a single j

What is net profit?

Net Profit. What remains after all costs — job costs and overhead — are subtracted from revenue. It's the real bottom line, not the margin on a single job.

Why it matters to your pricing

A job can show a healthy gross margin and still leave no net profit if overhead isn't recovered. Net profit is the number that tells you the business works.

This is a general educational definition, not financial or legal advice. Confirm anything regulated with your accountant or state board.
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