Gross Profit Calculator

Updated July 16, 2026 13:38

The Gross Profit Calculator in AviontéBOLD Front Office lets you quickly calculate pay rates, bill rates, and profit margins for rate negotiations and financial planning. This standalone tool determines optimal pricing without affecting live job data.

Key Takeaways

Quickly calculate pay rates, bill rates, and profit margins for rate negotiations and financial planning without affecting live job data
Switch between "Calculate Pay" and "Calculate Bill" modes to solve for different pricing scenarios
Tax rates and burden costs automatically populate based on your selected office and state configurations

Getting Started

Note: This feature is only available for Back Office Integrated Customers.

Navigate to Account & Settings in the header menu
Click Gross Profit Calculator to launch the tool

Understanding the Calculator Interface

Note: When the GP Calculator opens, the user's Home Office determines which taxes, rates, WC codes, and burden values display. The Office dropdown only shows offices the user has access to, and tax and burden rates update based on the selected office.

Tax and Burden Fields

Field	Description
Federal Employer Taxes	Federal tax percentage
Other Employer Tax	The summed employer tax percentage for taxes other than FUTA, FICA, MEDICARE, and SUTA taxes
SUTA State	State unemployment tax (rate updates based on selected state)
WC Code	Select appropriate Workers' Compensation code for rate calculation
General Liability	General liability insurance percentage
Extra Burden	Any additional burden costs
Total Burden	Automatically calculated total of all burden costs: ((Federal Employer Taxes + Other Employer Taxes + SUTA + General Liability + Extra Burden + Worker Comp) × Pay Rate) / 100
Total Cost	Automatically calculated sum of pay rate plus total burden

Rate and Gross Profit Fields

Field	Description
Pay Rate	The hourly rate paid to the employee
Bill Rate	The hourly rate charged to the client
Markup	The multiplier used to calculate rates (Bill Rate ÷ Pay Rate)
Gross Profit (GP)	Dollar amount of profit per hour
Gross Profit % (GP%)	Percentage of profit relative to bill rate

Calculator Controls

Office Dropdown: Select available offices with preconfigured tax and burden rates
Reset Calculator: Resets the calculator configuration to the default view and selections

Calculation Modes

Choose your calculation approach based on the information you have available:

Calculate Pay Mode

Select Calculate Pay when you know the bill rate and want to determine the pay rate. This mode is ideal when a client proposes a bill rate and you need to evaluate whether the resulting pay rate meets your margin requirements.

Calculate Bill Mode

Select Calculate Bill when you know the pay rate and want to determine the bill rate. Use this mode when you have a target pay rate and need to quote an appropriate bill rate to achieve your profit goals.

Step-by-Step Calculation Examples

Note: Calculated rates may differ based on which SUTA State and WC Code are selected.

Example 1: Calculate Pay Rate Using Markup

Select Calculate Pay
Make a SUTA State and WC Code selection
Enter your desired Bill Rate (e.g., $20.00)
Enter your target Markup (e.g., 1.50)
The system automatically calculates:
- Pay Rate: $13.33 (Bill Rate ÷ Markup, rounded to 2 decimal places)
- Total Burden and Total Cost update based on tax percentages (Total Cost displays to 4 decimal places, e.g., $16.7835)
- Gross Profit amount based on Pay Rate and Burden costs
- Gross Profit % based on Gross Profit relative to the Bill Rate

Example 2: Calculate Bill Rate Using Gross Profit Percentage

Select Calculate Bill
Make a SUTA State and WC Code selection
Enter your Pay Rate (e.g., $15.00)
Enter your target GP% (e.g., 25%)
The system calculates the required Bill Rate to achieve your target profit percentage

Example 3: Calculate Pay Rate Using Target Gross Profit

Select Calculate Pay
Make a SUTA State and WC Code selection
Enter your Bill Rate (e.g., $22.00)
Enter your target Gross Profit dollar amount (e.g., $5.00)
The system calculates: Pay Rate = Bill Rate - GP - Total Burden

Working with Tax Rates and Burden Costs

The Gross Profit Calculator pulls tax and burden values from your Back Office configuration, ensuring calculations reflect your actual business costs.

Federal Employer Taxes

Percentage value is pulled from Admin Tools > Config Option > Site > Branch Setting.

Note: This value is calculated from a combination of the Federal Tax, Med, and FUTA entries found in the Tax Rate section of Admin Tools.

Other Employer Taxes

Percentage value is pulled from Admin Tools > Employer > Tax > Tax Rate.

Note: Percentage value displayed is a combination of any other configured Tax Rate for the SUTA State selected that is not FUTA, FICA, MEDICARE, or SUTA, found in the Tax Rate section of Admin Tools.

SUTA State

Select your SUTA State from the dropdown. The system automatically applies the appropriate state unemployment rate. Percentage value is pulled from Admin Tools > Employer > Tax > Tax Rate.

WC Code

Choose the appropriate WC Code from the list. The WC Code selection is populated from Admin Tools > Employer > WC Code.

General Liability

This value is pulled from the Burden Factor named "GeneralLiability" in Admin Tools.

Extra Burden

This value is pulled from any other Burden Factor not named "GeneralLiability" in Admin Tools.

Tips for Effective Use

Rate Negotiation Scenarios:

Use Calculate Pay mode when a client proposes a bill rate and you need to determine if the resulting pay rate works for your margins
Use Calculate Bill mode when you have a target pay rate and need to quote an appropriate bill rate to achieve your profit goals

Profit Planning:

Test different GP% targets to see how they impact your required bill rates
Adjust burden costs to see their effect on your overall profitability
Compare markup and GP% approaches to find the most competitive pricing structure

State and WC Code Changes:

Always verify SUTA rates when working with positions in different states
Select the most accurate Workers' Compensation Code for precise burden calculations

Important Notes

The calculator operates independently and does not save data or connect to job orders
Total Cost and Markup display with 4 decimal places. All other monetary values display with 2 decimal places for precision
The system handles edge cases, like division by zero, automatically without errors
Use this tool for planning and negotiation. Actual job setup still requires standard BOLD workflows