Asphalt, Road Materials & Paving Products worked example

Asphalt Job Margin with quoted asphalt job revenue of 362,500 units: a worked example

Push quoted asphalt job revenue up to 362,500 units and the picture changes. This example computes every intermediate figure at that operating point. a contractor needs to check margin before submitting a paving bid, accepting a change order, or committing plant and crew time

The inputs for this scenario

  • Quoted asphalt job revenue: 362,500 units (raised for this scenario; the documented default is 145,000)
  • Estimated asphalt job cost: 121,000 units (unchanged)
  • Margin reference basis (usually revenue): 145,000 units (unchanged)

Working through the calculation

  • Applying the documented formula (Gross profit dollars = quoted asphalt job revenue - estimated asphalt job cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 167 % margin for asphalt job margin, the number this scenario is built around.
  • At this operating point the engine returns 241,500 $ for gross profit dollars.
  • At this operating point the engine returns 362,500 $ for quoted asphalt revenue.
  • At this operating point the engine returns 121,000 $ for estimated asphalt cost.

How this compares with the baseline

  • Against the tool's baseline example, where quoted asphalt job revenue sits at 145,000 units and the headline result is 16.55 % margin, this scenario comes in 906% above the baseline at 167 % margin.
  • It computes gross profit dollars (quoted revenue minus estimated cost) and expresses it as a percent margin against a chosen reference basis, normally revenue. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Asphalt job margin: 167 % margin (headline result)
  • Gross profit dollars: 241,500 $
  • Quoted asphalt revenue: 362,500 $
  • Estimated asphalt cost: 121,000 $

Run it with your numbers

  • Every input above is editable in the live Asphalt Job Margin calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.