Free estimate — verify against local code before building
Contractor Job Pricing Calculator
Build a defensible customer price from real job costs, then see margin, markup, deposit, and break-even figures without confusing one for another.
What this calculator includes
Enter the material subtotal from a takeoff, crew size and paid hours, wage, labor burden, equipment, subcontractors, permits, overhead, and contingency. Then choose either a target gross margin or cost markup. The calculator keeps sales tax separate, shows the exact break-even cost, and explains why margin and markup produce different selling prices. It is a planning tool, not accounting, tax, payroll, or legal advice.
How to use this contractor job pricing calculator
- 01
Enter direct job costs
Use current supplier quotes for materials and include rentals, delivery, subcontractors, permits, disposal, and other costs tied directly to this job.
- 02
Build burdened labor
Enter paid hours per worker, crew size, base wage, and a labor-burden allowance for payroll taxes, workers compensation, benefits, and paid nonproductive time. Use your bookkeeper's actual rate when available.
- 03
Recover overhead and uncertainty
Overhead covers company expenses that are not direct job costs. Contingency is a separate allowance for defined estimating uncertainty; it is not a substitute for a clear scope and change-order process.
- 04
Choose margin or markup
Margin is profit divided by selling price. Markup is profit divided by cost. Select the method your business uses and compare both effective percentages before sending the quote.
Calculation sources and review
Primary references and formula assumptions are linked so you can verify them against the selected product, supplier, and adopted local requirements.
Internal formula review completed July 13, 2026. What this review covers
- U.S. Small Business Administration — manage your finances (opens in a new tab)
Business-cost and financial-planning context.
Frequently asked questions
What is the difference between margin and markup?
Markup divides profit by cost, while gross margin divides profit by selling price. A 25% markup produces a 20% margin. To earn a 25% margin on $1,000 of cost, divide $1,000 by 0.75 for a $1,333.33 selling price.
What should labor burden include?
Labor burden can include employer payroll taxes, workers compensation, benefits, paid leave, training, and other employment costs above base wage. The correct rate is company- and jurisdiction-specific, so use payroll and accounting records.
Is overhead the same as profit?
No. Overhead recovers operating costs such as office staff, vehicles, software, insurance, sales, and rent. Profit is what remains after direct costs and overhead are recovered.
Should sales tax be included in margin?
This calculator adds the entered tax after the pre-tax selling price and excludes collected tax from gross-profit calculations. Taxability of labor, materials, and services varies by jurisdiction; confirm the taxable basis with a qualified local tax professional.
How much deposit should a contractor collect?
Deposit limits, payment schedules, and contract requirements vary by location and project type. Use a written agreement and confirm local consumer-protection, licensing, and home-improvement contract rules before collecting payment.