Contractor Profit & Pricing Calculator
Add up your true job cost — materials, labour, subs, equipment, overhead and a contingency — then divide by (1 − your target margin) to get the price you should charge. This free calculator does that instantly, shows your break-even, and explains why a 30% margin is a 42.9% markup, not a 30% markup.
Want your pricing to run itself?
We build custom quoting and job-costing systems that price jobs consistently, so every estimate you send already protects your margin.
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What this tool calculates
It turns your job costs and a target profit margin into a recommended selling price, then stress-tests it. You get your true job cost, break-even price, recommended price, dollar profit, margin, the equivalent markup, a comparison against any price you're considering, and what happens to your profit if costs run 10%, 20% or 30% over.
The formulas (nothing hidden)
Direct cost = materials + (labour hours × labour rate) + subcontractors + equipment + other. Add allocated overhead, then add a contingency percentage to get your total true job cost. Your break-even price equals that total. To hit a target margin, price = total cost ÷ (1 − margin). Margin is profit ÷ price; markup is profit ÷ cost — they are not the same number.
- Break-even price = total true job cost (zero profit).
- Recommended price = total cost ÷ (1 − target margin).
- Margin = profit ÷ price. Markup = profit ÷ cost.
- A 30% margin = a 42.9% markup on cost.
Worked example
Sarah runs a small reno crew. A bathroom job has $2,000 materials, 40 labour hours at $45/hr ($1,800), $300 equipment and $200 in permits/disposal, plus $500 overhead. At a 10% contingency her true job cost is $5,280. To hit a 30% margin she should charge $7,542.86 — a $2,262.86 profit, which is a 42.9% markup. If she'd quoted $6,000, she'd only make a 12% margin, and a 20% cost overrun would push her into a loss.
How to use it
- 1Enter your material, labour, subcontractor, equipment and other job costs.
- 2Add the overhead you're allocating and a contingency percentage.
- 3Set your target profit margin.
- 4Optionally type a price you're considering to see if it hits your target.
- 5Read your recommended price, profit, margin and the cost-overrun scenarios.
Key takeaways
- Price from cost and margin, not gut feel.
- Margin and markup are different — quoting a 30% markup when you meant a 30% margin quietly costs you money.
- Always leave a contingency; a 20% overrun can erase a thin margin.
Assumptions & limitations
- Labour rate is your loaded cost per hour (wage + burden), not the wage alone — use the Labor Burden Calculator to find it.
- Overhead is the slice of your monthly fixed costs you're allocating to this one job.
- Contingency covers the normal surprises; it isn't profit.
- Results are planning estimates, not a guarantee of what a customer will pay.
Questions contractors ask
What's the difference between markup and margin?
Margin is profit as a percentage of the price (profit ÷ price). Markup is profit as a percentage of cost (profit ÷ cost). A 30% margin equals a 42.9% markup. Mixing them up is one of the most common ways contractors underprice.
What profit margin should a contractor aim for?
It varies by trade and risk, but many contractors target a 20–40% net margin per job after covering labour, materials, overhead and a contingency. Enter your own target — the tool shows the price and markup it implies.
Should overhead be part of the job cost?
Yes. If you only price direct costs, your overhead comes out of your profit. Allocate a fair share of your monthly fixed costs to each job so your margin is real.
Is this calculator really free with no signup?
Yes. It runs entirely in your browser, needs no account, and nothing you type is uploaded or saved on our servers.
Want your pricing to run itself?
We build custom quoting and job-costing systems that price jobs consistently, so every estimate you send already protects your margin.