Gross Profit per Labour Hour Calculator
Compare output contribution per hour across teams, jobs or reporting periods. The tool shows the method and key assumptions so you can inspect how the input values lead to the estimate.
How to use this calculator
- Enter revenue attributed to the work using the unit and definition shown beside the input.
- Enter direct non-labour costs using the unit and definition shown beside the input.
- Enter labour hours worked using the unit and definition shown beside the input.
- Check that all values refer to the same time period and scenario.
- Review the outputs alongside the assumptions before using them in a decision.
Formula and assumptions
Gross profit per labour hour=(revenue−direct costs)/labour hours.
- The result excludes labour cost from the numerator as entered; decide whether the desired metric should deduct wages as a direct cost. Keep the cost definition consistent.
- The estimate is calculated from values you enter. It does not connect to external accounts, obtain live prices, or validate local regulations or engineering specifications.
Worked examples
Worked example
Revenue of 42,000 less 18,500 direct costs over 640 hours equals 36.72 per labour hour.
Enter revenue, the chosen direct-cost definition and total labour hours for the same period.
Use this as an operational comparison, not a complete profitability statement.
Understanding the result
The result excludes labour cost from the numerator as entered; decide whether the desired metric should deduct wages as a direct cost. Keep the cost definition consistent.
Change one input at a time to see how sensitive the output is to that assumption.
Important notes
The result excludes labour cost from the numerator as entered; decide whether the desired metric should deduct wages as a direct cost. Keep the cost definition consistent.
Frequently asked questions
What formula does the Gross Profit per Labour Hour Calculator use?
Gross profit per labour hour=(revenue−direct costs)/labour hours.
What should I verify before relying on the result?
The result excludes labour cost from the numerator as entered; decide whether the desired metric should deduct wages as a direct cost. Keep the cost definition consistent.
Can I compare different scenarios?
Yes. Change one assumption at a time, keep units and definitions consistent, and save the inputs used for each comparison.
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Related explanations
Learn the method behind the number or compare the terminology before using the calculator.
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This page provides a calculation tool plus explanatory information so you can understand what the result means and when the underlying method may not fit your situation.