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Contractor Pricing Calculator
Build a bid for a job from labor hours, hourly rate, materials and your markup.
How this calculator works
Multiply labor hours by your hourly rate, add the cost of materials, then apply your markup percentage to the total. The result is the bid price. Markup covers overhead and profit, so make sure it is large enough to pay for insurance, vehicles, tools, admin time and a profit for the business.
Example
A job needs 40 labor hours at $60 an hour and $1,500 of materials, with a 20% markup. The calculator shows: Bid Price: $4,680.00.
Tips
- Add a contingency to labor and materials for jobs with unknowns, such as older homes.
- Put the scope of work in writing, and price changes as separate change orders.
- Price materials with current supplier quotes, since costs can change from week to week.
Common questions
How much markup should a contractor charge?
It varies by trade, market and overhead. Work out your own overhead as a percent of costs, then add the profit you need.
Is markup the same as profit?
No. Markup is added to cost and has to pay for overhead first. What remains is profit.
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Results are estimates only. See our disclaimer.