Free Job Pricing Calculator for Contractors
Put in what the job will cost you, the share of overhead it should carry, and the profit you want to keep. You’ll get a bid price that covers all three, with the markup and margin it works out to.
Your bid
How to price a construction job
Direct cost = Labor + Materials + Subcontractors + Equipment + Other
Overhead = Direct cost × Overhead %
Break-even = Direct cost + Overhead
Bid price = Break-even ÷ (1 − Profit margin %)
Dividing by (1 − margin) makes the profit a true percentage of the price, not of your cost.
Examples
A $60,000 kitchen
Labor $18,000 + materials $24,000 + subs $9,000 + equipment $1,000 = $52,000 direct. Overhead at 15% = $7,800. Break-even = $59,800. For a 10% profit margin, price = $59,800 ÷ 0.90 = $66,444, and profit is $6,644.
A small deck repair
Labor $1,200 + materials $800 = $2,000 direct. Overhead 20% = $400. Break-even $2,400. At 15% margin, price = $2,400 ÷ 0.85 = $2,824.
Job Pricing Calculator: common questions
How do contractors price a job?
Add up the direct costs (labor, materials, subs, equipment), add the job’s share of overhead, then add profit. The calculator above does this in that order.
What overhead percentage should I use?
Divide your yearly overhead by your yearly direct costs. If overhead is $150,000 a year and you do $1,000,000 in direct costs, use 15%. The Overhead Calculator can help you find your number.
What profit margin should a remodeler aim for?
Many remodelers target 10% net profit after overhead, and more on smaller or riskier jobs. Pick a margin you can defend and check it against your real numbers at the end of each job.
Why divide by (1 − margin) instead of adding a percentage?
Adding 10% to your cost gives you a 9.1% margin, not 10%. Dividing by 0.90 makes profit exactly 10% of the price.
Should I include my own labor?
Yes. Price your own time at what you’d pay someone to do it, including payroll costs. Otherwise the business only looks profitable because you work for free.
How do I account for contingency?
Add a contingency line under Other, or raise the profit margin on jobs with unknowns, like old houses or hidden conditions.
What is break-even on a job?
The price that covers direct costs and overhead with nothing left over. Bidding below it means the job costs you money.
Can I share this price with my team?
Yes. The page link keeps your inputs. Copy it with the Share button and send it.
Talk to a person who knows remodeling.
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