How is it calculated?
Labor cost is work hours multiplied by hourly cost. Add materials, subcontractors, other costs and a percentage fee on the project price. Profit is the project price minus total costs.
Worked example
An ILS 10,000 project with 20 hours at ILS 200 per hour, ILS 1,000 materials and ILS 2,000 subcontractors, without other costs or fees, leaves ILS 3,000 profit and a 30% margin.
Common questions
Should I include my own working time?
Yes, to measure profit after the cost of your time. You can allocate overhead through hourly cost or other costs, without counting the same expense twice.