Enter the job cost ($) and the total revenue ($) into the Calculator. The calculator will evaluate the Job Cost Percentage. 

Job Cost Percentage Formula

JCP = JC / TR * 100

Variables:

  • JCP is the Job Cost Percentage (%)
  • JC is the job cost ($)
  • TR is the total revenue ($)

To calculate the Job Cost Percentage, divide the job cost by the total revenue, then multiply by 100.

How to Calculate Job Cost Percentage?

The following steps outline how to calculate the Job Cost Percentage.


  1. First, determine the job cost ($). 
  2. Next, determine the total revenue ($). 
  3. Next, gather the formula from above = JCP = JC / TR * 100.
  4. Finally, calculate the Job Cost Percentage.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

job cost ($) = 5000

total revenue ($) = 7000

FAQs

What is Job Cost Percentage and why is it important?

Job Cost Percentage (JCP) is a financial metric that measures the percentage of total revenue that is consumed by the cost of a job. It is important because it helps businesses understand the profitability of individual jobs, allowing them to make informed decisions about pricing, budgeting, and resource allocation.

How can Job Cost Percentage impact a business’s financial health?

A high Job Cost Percentage indicates that a large portion of revenue is being consumed by job costs, which can lead to lower profitability. Conversely, a low Job Cost Percentage suggests that a job is more profitable. Understanding and managing this percentage can significantly impact a business’s overall financial health by ensuring that jobs are priced correctly and resources are allocated efficiently.

Can Job Cost Percentage vary between industries?

Yes, Job Cost Percentage can vary widely between industries due to differences in cost structures, pricing strategies, and types of services or products offered. Industries with higher labor or material costs may have higher Job Cost Percentages, while those with lower costs or higher pricing power may have lower percentages.

How can a business improve its Job Cost Percentage?

A business can improve its Job Cost Percentage by reducing job costs through more efficient processes, negotiating better prices for materials, or increasing total revenue through higher pricing or additional services. Regularly reviewing and analyzing job cost data can also help identify trends and areas for improvement.