GAP CALCULATOR · 48 TRADES

WHAT YOUR NET PROFIT COSTS YOU, IN DOLLARS.

Pick your trade, put in your annual revenue, and see gross margin, overhead and net profit before taxes as your trade's industry average and the CFOS target, in dollars a year.

GAP CALCULATOR

THE GAP CALCULATOR. AVERAGE AGAINST TARGET, IN DOLLARS.

Pick your trade and put in your annual revenue. You get gross margin, overhead and net profit for your trade at your size: the industry average and the CFOS target, in dollars a year. Nothing you type leaves this page.

Your figures show here once you put in your revenue.

Why aim for the target. An average is the middle of the pack: about half of companies do worse. And about 6 in 10 construction businesses close within 10 years (U.S. Bureau of Labor Statistics: about 40 percent of construction businesses opened in 2013 were still open in 2023). So the business in the middle is one of the ones that close. On those numbers, average is a business that closes within 10 years. That is why the CFOS target is a requirement.

Want your own numbers against these? The Financial Health Snapshot builds a CEO Report from your last 12 months and sets every figure against your trade, or compare your numbers with Josh on a 20 minute call.

HOW IT WORKS

TWO PICKS. THREE NUMBERS IN DOLLARS.

Net profit is gross margin minus overhead, before taxes. The calculator finds your revenue band ($1M to $5M, $5M to $10M, $10M to $25M), reads your trade's average and the CFOS target for that band from Run On CFOS Trade Benchmark Reference, and multiplies each one by your revenue. The net profit difference between average and target, in dollars a year, is what the target is worth at your size.

HOW THE NET PROFIT FIGURES ARE BUILT

Gross margin and overhead come from figures CFMA, Jones Maresca and other sources publish by trade and size. Net profit is computed, not surveyed: net profit = gross margin minus overhead. Nothing comes out for taxes, interest or other income and expense, so it is a before tax figure, on the same basis as CFMA's net income before taxes.

CFMA's 2025 medians are 7.1 percent before interest and taxes and 6.7 percent net income before taxes. Gross margin minus overhead leaves out interest and other income and expense, so a figure here can come in a little above or below a reported net income on the same business. The bands above the $10M to $25M band are published at runoncfos.com as a modeled extension of the same curves. They have not been reconciled against the licensed CFMA Benchmarker, so read them as a model and not as a survey result.

Pick your trade and put in your annual revenue. It finds your revenue band and gives gross margin, overhead and net profit before taxes, each as your trade's industry average and the CFOS target, in percent and in dollars a year, then the net profit difference between the two in dollars.

An average is the middle of the pack: about half of companies do worse. About 6 in 10 construction businesses close within 10 years (U.S. Bureau of Labor Statistics: about 40 percent of construction businesses opened in 2013 were still open in 2023). So the business in the middle is one of the ones that close. On those numbers, average is a business that closes within 10 years. That is why the CFOS target is a requirement.

12 percent before taxes, for every trade and every revenue band. The one exception is electrical at 12.5 percent. It is a target, never an industry average. The overhead target is the trade's average minus 1 point and the gross margin target is the net profit target plus the overhead target, so every row ties.

Run On CFOS Trade Benchmark Reference, by trade and revenue band ($1M to $5M, $5M to $10M, $10M to $25M). Gross margin and overhead are surveyed figures; net profit is computed as gross margin minus overhead and is before taxes. Every trade page linked below lists the figures and the sources band by band.
BY TRADE

EVERY FIGURE, BAND BY BAND.

The figures behind the calculator for each trade, with the sources. Each page has the same calculator set to that trade.

Josh Luebker, SPM The Construction CFO
Josh Luebker
FRACTIONAL CFO · SPM THE CONSTRUCTION CFO

Josh Luebker is a master electrician turned construction CFO, president of SPM The Construction CFO and author of CONTROL: C.F.O.S. Construction Financial Operating System.

WANT THE NUMBER FROM YOUR OWN BOOKS?

Twenty minutes with Josh on your last 12 months: where your own numbers land against these, and which side to fix first. Nothing gets sold on the call. If SPM can help, you set a second one.

You don't hire a CFO because it's safe, you do it because the real risk isn't having one.
Book a 20 minute call

20 minutes. Nothing gets sold on this call and nothing gets proposed. Josh asks questions to work out whether he can help at all.

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