Subcontractor Split Calculator

The Calculator

The boxes start with an example job. Replace every number with your own.

How It Is Worked Out

• The cut is worked on = the job total, or the job total − parts, whichever you chose.
• The sub earns (his share) = the amount the cut is worked on × his percent.
• The sub is owed = his share, plus the parts if he paid for them.
• You keep = job total − parts − his share.
• Who owes whom = what the sub is owed − the cash he collected from the customer. Above zero, you owe him that much. Below zero, he owes you.

Whoever paid for the parts, you keep the same amount. Who paid only changes who hands money to whom.

Three Examples

These jobs are made up and round.

1. You paid the parts, cut on the total. Job $1,000, parts $200, 40%, the sub collected nothing. His share is $1,000 × 40% = $400. You keep $1,000 − $200 − $400 = $400. You owe him $400.
2. The sub paid the parts, cut after parts, he took all the cash. Job $1,000, parts $200, 40%, he collected $1,000. His share is ($1,000 − $200) × 40% = $320. He is owed $320 + $200 = $520. You keep $1,000 − $200 − $320 = $480. He holds $1,000, so he owes you $520 − $1,000 = −$480, which is $480.
3. You paid the parts, cut after parts, he took part of the cash. Job $500, parts $100, 50%, he collected $200. His share is ($500 − $100) × 50% = $200. You keep $500 − $100 − $200 = $200. He is owed $200 and already holds $200, so nobody owes anything.

What to Do With the Answer

Settle the difference once, in one message, and write down which way the cut was agreed before the job starts. The guide covers cash jobs, who pays for parts and how to keep the books clean: How to Pay Subcontractors on a Percentage.

In HeadHoncho the cut is set once per sub and worked out on every job, then you close the balance. See Finance and Payouts.