Job Pricing Calculator
The full picture in one place: every cost on a job — labor, materials, subcontractors, travel, other expenses — plus an overhead allowance and your target margin, producing a recommended price you can defend.
Price = Total cost ÷ (1 − Margin)$1,909.00 ÷ 0.65 = $2,936.92Cost breakdown
| Labor | 16 hrs × $45.00/hr | $720.00 |
| Materials | $900.00 | |
| Subcontractors | $0.00 | |
| Travel / fuel | $40.00 | |
| Other direct | $0.00 | |
| Overhead allowance | 15% of direct | $249.00 |
| Total job cost | $1,909.00 | |
| Gross profit | at 35% margin | $1,027.92 |
Painting: where the number comes from
A painting crew prices a two-day exterior repaint: painter-hours at a burdened rate, paint and supplies, and a week of trailer fuel spread over that week's jobs.
| Input | Value |
|---|---|
| Labor | 16 hrs × $45 burdened |
| Materials | $900 |
| Travel/fuel | $40 |
| Overhead | 15% of direct |
| Target margin | 35% |
Result: Quote $2,936.92 (round to $2,950) — 35% margin held
Dividing by (1 − 0.35) prices to the margin correctly. Multiplying by 1.35 would have given $2,577 — a real margin of only 25.9%, five points below target on every similar job.
Load this example into the calculatorThe calculation
| Labor | 16 × $45 = $720.00 |
| Direct cost | $720 + $900 + $0 + $40 + $0 = $1,660.00 |
| Overhead | $1,660 × 15% = $249.00 |
| Total cost | $1,909.00 |
| Price | $1,909 ÷ (1 − 0.35) = $2,936.92 |
| Gross profit | $1,027.92 |
How this calculator works
Every result comes from the formulas below — the math shown is the math used. Change any input and results update instantly in your browser; nothing is sent to a server.
- Direct job cost:
Direct Cost = Labor + Materials + Subs + Travel + Other - Overhead allowance:
Overhead = Direct Cost × Overhead Rate %Allocate overhead in proportion to direct job cost — a simple but widely used method. - Recommended price:
Price = (Direct Cost + Overhead) ÷ (1 − Target Margin ÷ 100)Dividing by (1 − margin) prices to the margin correctly; multiplying by (1 + markup) understates it.
What the result means
The recommended price is built bottom-up: every direct cost, an overhead allowance, then your target margin applied by division. The gross profit line is what the job leaves for the business before net income.
When to use it
Use it to price a full job from its real parts: labor, materials, subs, travel, overhead and your target margin.
Common mistakes
- Quoting labor at the bare wage instead of the burdened rate.
- Leaving out small direct costs — disposal, permits, extra trips — that eat the margin.
- Recovering overhead 'when there's profit left over', which is never.
Frequently asked questions
How do I price a job as a contractor?
Add up every direct cost the job will incur — labor (at your fully burdened rate, not just wages), materials, subcontractors, travel and anything else — add an overhead allowance, then divide by (1 − your target gross margin). Charging just cost plus a flat markup usually underprices jobs because overhead never gets fully recovered.
Should overhead be included in a job price?
Yes. Overhead — insurance, vehicles, tools, office costs, software, licensing — is real and every job must contribute to it. Contractors who recover overhead only 'when there's profit left over' routinely quote prices that lose money on paper jobs that look busy.
Before you send the quote, sanity-check the margin it really carries.
Verify the margin on this price →Related tools and guides
Job Pricing Calculator is part of RateCraft, a set of free pricing and estimating tools for contractors and service businesses. Results are calculated entirely in your browser and are estimates for planning purposes — see our disclaimer and methodology.