Pricing a job on raw cost alone is how contractors go out of business — overhead and profit have to be built in before a number ever reaches a client. This calculator takes your material and labor costs, applies your overhead percentage, and backs into a client price at the profit margin you actually need, showing markup and margin side by side so there's no confusion about which one you're quoting.
| Description | Qty | Rate | Total |
|---|---|---|---|
| Lumber & framing | 1 | $1,200.00 | $1,200.00 |
| Hardware & fasteners | 1 | $340.00 | $340.00 |
| Concrete mix | 1 | $280.00 | $280.00 |
| Lead carpenter | 16 hrs | $65.00/hr | $1,040.00 |
| Laborer | 24 hrs | $38.00/hr | $912.00 |
| Overhead (12%) | $452.64 | ||
| Profit (35%) | $2,274.81 | ||
$620 tile + $180 thinset & grout + $350 labor. Overhead 22%, target margin 30%.
$480 door + $95 hardware + $240 labor. Overhead 18%, margin 25%.
$2,200 composite decking + $180 fasteners + $900 labor. Overhead 20%, margin 32%.
Most residential contractors mark up materials between 20% and 50%. General contractors often use 30–40%, while specialty trades (plumbing, electrical) may go higher. The right number depends on your overhead costs, local market, and the project type. Use this calculator to find the markup that hits your target profit margin.
Markup is calculated on cost (profit ÷ cost × 100). Margin is calculated on the selling price (profit ÷ price × 100). A 25% markup produces roughly an 20% margin — they are not the same number. Clients often talk in margin; contractors often bid in markup. This calculator shows you both so there's no confusion.
Yes. Managing subcontractors takes time, carries risk, and uses your license. A general contractor typically marks up subs 10–20%. Make sure your contract spells this out clearly or bundle it into your project management fee.
Add up all fixed monthly business costs — truck payments, insurance, office, phone, software, advertising — then divide by your average monthly revenue. If you spend $8,000/month on overhead and bill $40,000/month, your overhead rate is 20%. Enter that number here and the calculator builds it into every quote automatically.
Yes. Add labor as a line item just like materials. The overhead and margin percentages then apply to the full job cost, which is the correct way to price a complete project.