Freelance ProfitMargin Calculator
See how revenue and direct costs shape a project's gross profit, then apply a simple tax estimate to explore net profit and net profit margin.
Enter figures for the same project or period. You can adjust the tax estimate, compare the breakdown, and see how the result changes as you plan your next quote.
Net profit margin
52.5%$5,250 net profit after direct costs and estimated tax
Profit breakdown
- Revenue
- $10,000.00
- Direct costs
- -$3,000.00
- Gross profit (70.0%)
- $7,000.00
- Estimated tax (25%)
- -$1,750.00
- Net profit
- $5,250.00
Enter revenue above zero to calculate a profit margin. Profit amounts remain available for comparison.
How it works
Gross profit is revenue minus the direct costs you enter. The calculator estimates tax by applying your selected flat rate to positive gross profit; when gross profit is zero or below, estimated tax is zero.
Net profit is gross profit after that estimated tax. Gross and net margins divide each profit figure by revenue. At zero revenue, a margin is undefined, so the calculator shows a dash instead of a percentage.
Make the estimate fit your work
The result includes only the revenue and direct costs you enter. General overhead, payroll, benefits, and other business expenses are excluded unless you add them to direct costs. Add the costs that matter to your project or period to see how they change the estimate.
The estimated tax is a simple flat-rate illustration, not a tax calculation. Use your own circumstances and local rules when planning what to set aside.
FAQ
What counts as a direct cost?
Use costs tied to delivering the project or earning that revenue, such as subcontractor fees, project-specific software, or materials. Include other costs only if you want them reflected in this estimate.
How is estimated tax calculated?
The calculator multiplies positive gross profit by the tax rate you select. It uses zero estimated tax when gross profit is zero or negative.
Why does margin show a dash at zero revenue?
Margin divides profit by revenue. With no revenue, that percentage is undefined, though the profit amounts can still be shown.
Turn that brief into a clear quote.
Paste the brief you already have into Roadbase and get an editable project draft with the work, phases and price laid out. Review the hours, costs and assumptions, change what doesn't fit, then use the draft to build your quote.