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WIP schedule / over-under billing calculator

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Under-billed by $50,000Bill it this cycle
Estimated gross profit
$200,000 · 20%
Percent complete (cost-to-cost)
50%
Earned revenue
$500,000
Gross profit to date
$100,000
Billed to date
$450,000
Under-billed (costs and estimated earnings in excess of billings — asset)
$50,000
Cost to complete
$400,000
Revenue remaining
$500,000
Left to bill
$550,000
Earned Billed Contract
  • Job 1($50,000)
Up to 10 jobs
Show the math▾
  1. Estimated gross profit
    total contract − estimated total cost
    $1,000,000.00 − $800,000.00 = $200,000.00
  2. Estimated margin
    estimated gross profit ÷ total contract
    $200,000.00 ÷ $1,000,000.00 × 100 = 20%
  3. Percent complete
    cost to date ÷ estimated total cost
    $400,000.00 ÷ $800,000.00 × 100 = 50%
  4. Earned revenue
    percent complete × total contract
    50% × $1,000,000.00 = $500,000.00
  5. Gross profit to date
    earned revenue − cost to date
    $500,000.00 − $400,000.00 = $100,000.00
  6. Over / (under) billing
    earned revenue − billed to date
    $500,000.00 − $450,000.00 = $50,000.00
  7. Cost to complete
    estimated total cost − cost to date
    $800,000.00 − $400,000.00 = $400,000.00
  8. Revenue remaining
    total contract − earned revenue
    $1,000,000.00 − $500,000.00 = $500,000.00
  9. Left to bill
    total contract − billed to date
    $1,000,000.00 − $450,000.00 = $550,000.00

Where the numbers come from

  • Percent complete (cost-to-cost): Percent complete = cost to date ÷ estimated total cost at completionASC 606-10-55-20: input methods recognize revenue "on the basis of the entity's efforts or inputs… (for example… costs incurred…) relative to the total expected inputs". Costs incurred ÷ total estimated costs is the "cost-to-cost" method, the construction industry standard (CFMA). ASC 606-10-55-21: leave out costs that do not show progress — wasted material, rework, and big uninstalled materials (those are recognised at cost, no margin).Source
  • Earned revenue: Earned revenue = percent complete × total contract (original + approved change orders)26 CFR §1.460-4(b)(2): the completion factor is cumulative contract costs ÷ estimated total contract costs, and cumulative revenue is the completion factor × the total contract price. Its example: $200,000 ÷ $800,000 = 25% × $1,000,000 = $250,000; next year $600,000 ÷ $900,000 = 66.67% → $666,667. Unapproved change orders and claims are not in the contract until approved (or, for tax, reasonably assured — 26 CFR 1.460-4(b)(4)).Source
  • Over-billing and under-billing: Billed to date − earned revenue. Positive = over-billed (billings in excess of costs and estimated earnings, a current liability). Negative = under-billed (costs and estimated earnings in excess of billings, a current asset)CFMA: "Percent complete = costs incurred to date ÷ total estimated costs… Earned revenue = percent complete × total contract price… Billed to date = whatever's actually been invoiced to the owner." The gap is booked as "costs and earnings in excess of billings" (under-billed) or "billings in excess of costs and earnings" (over-billed). Same definitions at Pease Bell CPAs (https://www.peasebell.com/?p=2810) and Porte Brown (https://blog.portebrown.com/work-in-progress-wip-in-construction-how-it-works), whose example is the default here: $1,000,000 contract, $800,000 estimated cost, $400,000 spent = 50%, $500,000 earned, $450,000 billed → $50,000 under-billed.Source
  • Gross profit: Estimated gross profit = total contract − estimated total cost. Gross profit to date = earned revenue − cost to date (= percent complete × estimated gross profit)CFMA (Dedo): margin = (contract − estimated cost) ÷ contract. Its example: a $2,000,000 job estimated at $1,600,000 carries a 20% margin; when the estimate is revised to $1,720,000 the margin fades to 14% — the earned revenue drops with it, and a job can swing from under- to over-billed with no new invoice. Once the cost to date is past the estimate, this page figures the gross profit on the cost actually spent (contract − cost to date). Corpay's worked example (https://www.corpay.com/resources/blog/construction-wip-report) is reproduced in the tests for the billing side — $2,400,000 + $185,000 change orders = $2,585,000; estimated cost $2,180,000; cost to date $1,635,000 = 75.0%; earned $1,938,750; billed $1,845,000 → $93,750 under-billed — it gives no gross-profit figures.Source
  • Loss jobs: When the estimated total cost is more than the contract, GAAP books the whole expected loss right away (ASC 605-35-25-45/46), not pro rataASC 605-35-25-45: "For a contract on which a loss is anticipated, an entity shall recognize the entire anticipated loss as soon as the loss becomes evident"; this guidance was not superseded by ASU 2014-09 (ASC 606). This page spreads the loss by percent complete in the gross-profit-to-date line, which is what a management WIP does for billing, and shows the whole loss on its own line ("Loss to book under GAAP") so your CPA can book the provision. Management tool, not accounting advice — your CPA's WIP schedule may differ.Source

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This is a community calculator for the construction trades. We check every number against its source, but mistakes happen. If a number looks wrong, tell us — and tell us which calculator you want next.

The work-in-progress schedule your bank, bonding agent and CPA ask for, figured the standard way: percent complete = cost to date ÷ estimated total cost; earned revenue = percent complete × contract; billed more than earned = over-billed (a liability), billed less = under-billed (an asset). One job, or up to 10 with totals.

Management tool, not accounting advice. Your CPA's WIP schedule may differ — for example a job that will lose money has its whole loss booked at once under GAAP, and big uninstalled materials are left out of percent complete.

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