Contractor finance
This tool assumes the current cost pace continues through the rest of the job.
Use labor, materials, subcontractors, equipment, and other cost already on the job.
Estimate progress honestly. This number drives the projection.
These numbers show what the job looks like at the current burn rate.
50.0% complete with $13,500.00 spent implies a projected final cost of $27,000.00.
Projected profit has been consumed. The job is at risk of finishing at break-even or worse.
The tool compares cost incurred to actual progress. If 50% of the job is done and 50% of the cost has been spent, the job is tracking to the original budget. If cost is arriving faster than progress, the projected profit starts falling.
Profit fade means the expected profit on a job declines as the work moves forward. The budget may stay the same, but the estimated final cost keeps rising.
A contractor starts a $24,000 tenant improvement expecting to finish at $19,000 in total cost. Midway through the job, the team reports the work is 50% complete, but cost incurred is already $13,500. That pace projects a final cost of $27,000. The expected profit has faded from a gain to a loss.
Profit fade usually appears before the job is finished. If you can see it early, you can correct labor, push change work, tighten purchasing, or stop absorbing costs that should be priced separately.
Profit is easier to protect when budget, cost, progress, and change work stay in the same job record.
See the practical next steps