Question: how do you calculate labor gross profit?
Answer: Total labor cost for a job (in dollars) divided by the reciprocal of your GP target percentage (the reciprocal is just 1 minus your GP target percentage). For example, if your labor cost for a job totals $100, and you wish to make a 70% gross profit on the sale of that labor, you would divide $100 by . 30 (1 – .