Free tool

Job pricing calculator

Add labor, materials, subs and other costs, then your overhead and the net profit you want. You get a job price, gross and net profit, and a line-by-line breakdown.

Job price

$3,640.0010% net profit after 20% overhead

Labor: $1,080.00
Materials: $1,500.00
Subcontractors: $0.00
Other job costs: $150.00
Direct cost: $2,730.00
Overhead: $546.00
Total cost: $3,276.00

Gross profit: $910.00 (25%)
Net profit: $364.00 (10%)

Price = total cost ÷ (1 − target net margin).

How it's calculated

Labor = hours × burdened rate
Direct cost = labor + materials + subcontractors + other costs
Overhead = direct cost × overhead %
Total cost = direct cost + overhead
Price = total cost ÷ (1 − target net margin)
With a material markup: price = (total cost − materials) ÷ (1 − target margin) + materials × (1 + markup)
Gross profit = price − direct cost; net profit = price − total cost

How to use it

1Enter labor. Enter the crew hours for the job and your burdened labor rate (wage plus taxes, insurance and benefits).
2Add direct costs. Add materials, subcontractors and other job costs such as permits, equipment rental and dump fees.
3Set overhead. Enter overhead as a percentage of direct cost: rent, office staff, insurance, trucks and software spread across your jobs.
4Set your target profit. Enter the net profit margin you want after overhead.
5Quote the price. Use the job price, and check the gross and net profit before you send the estimate.

Worked example

24 crew hours at a $45 burdened rate, $1,500 of materials, $150 of other costs, 20% overhead and a 10% net profit target. No separate material markup.

Labor = 24 × $45 = $1,080
Direct cost = $1,080 + $1,500 + $150 = $2,730
Overhead = $2,730 × 20% = $546
Total cost = $2,730 + $546 = $3,276
Price = $3,276 ÷ (1 − 0.10) = $3,640

Quote $3,640. Gross profit is $910 (25% of the price) and net profit is $364 (10%).

Sources

FDIC and U.S. Small Business Administration, Money Smart for Small Business, Module 8: Profitability (participant guide, FDIC-029-2025). Accessed 2026-11-03.
Gross profit is revenue minus the cost of goods sold; net profit subtracts overhead as well. Profit margin = net profit ÷ revenue, shown as a percentage.

FAQ

Job pricing calculator questions

Have a question we didn't cover? Book a demo and ask a product specialist.

Why divide by (1 − margin) instead of adding a percentage?

Adding 10% to your cost gives a 10% markup, which is only a 9.1% margin. Dividing by 0.90 makes profit exactly 10% of the price, which is how margin is measured on your profit and loss statement.

What labor rate should I use?

Use a burdened rate: the wage plus payroll taxes, workers' comp, benefits and paid time off, spread over billable hours. Our burdened labor rate calculator works it out.

How do I find my overhead percentage?

Add up a year of overhead (costs you'd have even with no jobs, such as rent, office pay, insurance, vehicles and software) and divide by a year of direct job costs. Use last year's books as a starting point.

Should I mark up materials separately?

Some contractors do, often at a lower rate than labor. Leave material markup at 0 to price materials with the same margin as everything else. Enter a markup and materials are billed at cost plus that markup, outside the margin calculation.

What's the difference between gross and net profit here?

Gross profit is the price minus direct job costs. Net profit also subtracts the job's share of overhead. Net is what the business actually keeps.

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