Are You Really Profitable? How to Accurately Job Cost Every Single Roofing Project

We've all been there. You finish a big job, the check clears, and your bank account looks healthy. You've been busy all season, running from estimate to install, putting out fires, and keeping your crew moving. But when you get to the end of the year and look at what's actually left over, you're left scratching your head and asking, "Where did all the money go?"

The brutal truth is that being busy doesn't equal being profitable. Revenue is vanity, profit is sanity. The single most powerful tool you have to protect your sanity—and your business—is meticulous, line-item job costing.

Guessing based on a price-per-square might have worked for your grandpa, but in today's market, with volatile material prices and rising labor costs here in Connecticut, it's a recipe for disaster. Let's break down how to build a job costing system that tells you the true story of every single project.

The Foundation: Your Job Costing Spreadsheet

Think of this as the blueprint for your profitability. You can use Excel, Google Sheets, or specialized software, but the principles are the same. Every cost associated with a job must be tracked. We're going to divide these costs into Direct Costs (the obvious stuff) and Indirect Costs (the profit killers).

Part 1: Direct Costs (Cost of Goods Sold - COGS)

These are the expenses directly tied to completing a specific roofing project. If you didn't have the job, you wouldn't have these costs.

This seems simple, but the details matter. Don't just put "shingles." List everything. Understanding current material pricing is crucial for accurate job costing. For a comprehensive guide on roofing material costs and how they impact your profitability, check out RoofSnap's roofing materials price guide, which provides valuable insights into material costs and profitability margins.

This is where most roofers get into trouble. You are not paying your roofer $30/hour. You're paying much, much more. The additional cost on top of the wage is your Labor Burden.

In Connecticut, the 2025 SUTA (State Unemployment Tax Act) rate can range from 1.7% to 6.6% of the first $25,000 in wages for each employee. Workers' Compensation Insurance is a massive expense in roofing. Due to the high risk, rates in Connecticut can be anywhere from $20 to $40 (or more) per $100 of payroll. It's a huge number you absolutely cannot ignore.

These are still directly tied to the job.

• Dump Fees: Factor in tonnage. A typical residential roof tear-off is 3-5 tons. Connecticut tipping fees can range from $90 to $120 per ton. Call your local transfer station for your exact rate.
• Permits: The cost of the building permit from the town hall (e.g., Mansfield, Hartford, etc.).
• Equipment Rental: Scaffolding, container rental, or a specialized lift if needed.

Part 2: Indirect Costs (Overhead & Sales)

These are the costs of being in business. They aren't tied to one specific job, but every job must pay its fair share to cover them.

If you have a salesperson, this is a clear cost. It's typically a percentage of the total contract price. If you are the salesperson, you should still pay yourself a commission to accurately reflect the cost of acquiring the job.

Overhead is the silent killer of profitability. These are the expenses that keep your doors open, whether you're on a roof or not.

Putting It All Together: The Final Calculation

Now, you can see the whole picture.

In this scenario, you might have felt great about a $6,500 "profit." But the reality is, after paying for the cost to acquire the sale and the cost to keep your business running, your actual net profit is $2,750.

That number—your net profit—is what you use to reinvest in the company, buy new equipment, and build a financially strong business. If that number is too low or, even worse, negative, you know you have a problem. You're not just busy; you're busy losing money. Understanding your true costs helps you make informed decisions about which projects to pursue and which to pass on. For more insights into building a profitable roofing business, explore our exclusive lead generation services, which can help you focus on high-quality projects that maximize your profitability.

While accurate job costing is essential for profitability, it's only half the equation. You also need a steady stream of high-quality leads to keep your business growing. Understanding how to get roofing leads that maximize your profitability is crucial. That's where LeadZik's exclusive lead generation service comes in. Our AI-powered platform delivers exclusive, high-intent roofing leads directly to your phone, ensuring you're not competing with other contractors for the same opportunities. Our roofing lead generation services focus on delivering the best roofing leads that help you maintain healthy profit margins on every project. When you combine accurate job costing with exclusive leads, you create a profitable and sustainable roofing business in Connecticut. To further improve your profitability, consider reading our guide on focusing on metrics instead of chasing cheap leads, which explains how tracking the right metrics leads to better profit margins.