---
title: "Contract Value and Profit Calculation in Ontraccr"
url: "https://help.ontraccr.com/en/article/contract-value-and-profit-calculation-in-ontraccr"
language: "en"
last_updated: "2025-08-22T18:16:24.849Z"
---

# Contract Value and Profit Calculation in Ontraccr

## 🧾 **Contract Value and Profit Calculation in Ontraccr**

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### 📘 **Overview**

In Ontraccr, the **Contract Value** represents the total amount you are charging your customer for a project. This number is essential for calculating your **expected profit**, which is automatically computed by the system based on the contract value and your estimated project costs.

You’ll enter this field in **Step 5: Budget**, and it plays a critical role in **project health**, **margin analysis**, and **reporting**.

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### **💰 Where to Set the Contract Value**

-   Navigate to the project’s **Step 5: Budget**
-   This field is available in both:
    -   **Build Estimate mode** (detailed cost codes)
    -   **High-Level Entry mode** (summary inputs)

Look for the field labeled **Contract Value** at the top or in the right-hand section of the budget view.

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### **📐 How Expected Profit Is Calculated**

Ontraccr automatically calculates expected profit using this formula:

```plaintext

Expected Profit = Contract Value − Total Estimated Cost

```

Where:

-   **Contract Value** = What you are billing the client
-   **Estimated Cost** = Sum of all costs from your budget (labor, material, overhead, equipment, plus burden if applicable)

The result is shown live within the budgeting page and can be exported as part of your budget report.

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### **📊 How It’s Used**

-   Displays **expected profit** as a dollar value
-   Used in **internal reporting** to compare forecasted vs actual performance
-   Shows up in key interfaces such as:
    -   **Progress Page**
    -   **Analytics dashboards**
    -   **Exports**

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### **🔒 Important Notes**

-   Changing the contract value **does not affect** cost code values or time tracking — it’s strictly used for **profit forecasting**
-   If you switch between budgeting modes (detailed vs high-level), the contract value persists

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### **🧠 Tips**

-   Set a **realistic contract value** to get accurate expected profit figures
-   Use this number to **analyze margins** per project before go-live
-   Combine with **actuals from Progress Page** later to calculate true profit