Job Pricing Calculator
Most underpriced jobs aren't underpriced on labor or materials — they're underpriced because overhead and real margin never made it into the quote. This calculator stacks all four layers the way the math actually works.
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Fill in materials, hours, and rate to price the job. Margin must be under 100%.
The formula
Price = (materials + labor + overhead) ÷ (1 − target margin)
A worked example
A job needs $850 in materials and 16 labor hours at a true cost of $42/hour (wage plus taxes and comp) — $672 of labor. Direct costs are $1,522. At 25% overhead that's another $380, for a total cost of $1,902. To keep a 20% margin, quote $2,378 — not $2,282, which is what a "20% markup" would give you and quietly costs you $96 on this one job.
The common mistake
Confusing markup with margin, and skipping overhead entirely. If your quotes have been labor + materials + "a little extra," the gap between that and this calculator's number is why busy months don't show up in the bank account. We wrote more about this in How to Price a Service Call and 5 Signs Your Quoting Process Is Costing You Jobs.
Frequently asked questions
What's the difference between markup and margin?
Markup is a percentage added to cost; margin is the percentage of the final price you keep. A 20% markup on cost equals only a 16.7% margin on price. To hit a target margin, divide total cost by (1 − margin), don't multiply by (1 + markup).
What should I use for overhead percentage?
Take last year's total overhead — vehicles, fuel, insurance, tools, phones, software, admin — and divide it by last year's total direct job costs. Most small trade businesses land between 20% and 35%. Guessing low is the most common pricing mistake in the trades.
What hourly labor cost should I enter?
What an hour actually costs you, not the wage alone: wage plus payroll taxes plus workers' compensation, typically 15–25% above the base wage. If you pay a tech $35/hour, your true cost is usually $40–44.
What profit margin should a contractor target?
Healthy trade businesses typically target 15–25% net margin on jobs after all costs including overhead. Below 10%, one callback or slow month erases the profit on several jobs.
More free tools
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