Free Calculator Tool

Trapped Profit Calculator

Every day a job sits unpaid, your profit is trapped. See exactly how much working capital is tied up in payment delays—and what it's costing your business.

What is trapped profit?

Trapped profit is the money you've earned but can't access. When you complete a job but don't get paid for 30, 45, or 60+ days, that profit sits idle instead of working for your business.

Insurance jobs waiting on adjusters

Supplements, re-inspections, and approval delays

Final inspections taking weeks

Municipality backlogs and scheduling delays

Collections falling through the cracks

No system to track what's owed and follow up

The Hidden Cost

Typical contractor $2M annual revenue
Average payment delay 45 days
Capital trapped at any time $246,575
Annual cost @ 10% interest $24,657/year

That's money paying interest instead of funding growth.

Calculate your trapped profit

Enter your numbers below to see how much capital is tied up in payment delays.

$

Include time for inspections, approvals, insurance processing, etc.

%
%

What you pay on credit lines or could earn if reinvested

Your Results

Capital Trapped at Any Time

Revenue waiting for payment

Profit Trapped in Delays

Your money, sitting idle

Annual Cost of Trapped Capital

Interest paid or opportunity lost

Additional Jobs You Could Fund

jobs

If that capital was freed up

Potential Additional Revenue

By reinvesting freed capital

If you reduced delays by just 10 days:

What these numbers mean for your business

Growth Constraint

Every dollar trapped in receivables is a dollar you can't use to fund new jobs, buy materials, or hire crews. Trapped profit directly limits how fast you can grow.

Interest & Opportunity Cost

If you're financing operations with credit lines, trapped profit means paying interest on money you've already earned. If not, it's opportunity cost—growth you're missing.

Compounding Effect

The longer delays persist, the more capital gets trapped. A 10-day reduction in payment time can free up tens of thousands in working capital instantly.

How to free trapped profit

Reducing payment delays isn't about working harder—it's about having systems that prevent delays in the first place.

1

Track job status in real-time

Know exactly where every job stands—what's waiting on inspection, what needs documentation, what's ready to invoice.

2

Automate follow-ups and reminders

Never let a payment fall through the cracks. Automatic alerts when jobs are ready to collect or payments are overdue.

3

Streamline documentation

Complete photos, signatures, and paperwork in the field. No delays waiting for crews to submit paperwork.

4

Identify bottlenecks early

See which jobs are stuck and why. Address issues before they become 30-day delays.

How ContractorHUB helps

Our pipeline management tools are designed to move jobs faster and get you paid sooner.

Real-time job tracking from lead to payment
Automated alerts for stuck jobs and overdue payments
Crew Portal for instant field documentation
Pipeline analytics to identify delay patterns
Insurance claim tracking and supplement management

Ready to free your trapped profit?

See how ContractorHUB can help you move jobs faster, collect sooner, and put your profit back to work.

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