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Calculate job costs, markup and margin
Work out the selling price from your labor, materials, travel and other job costs. Add the quantities and rates, then state the whole-job margin or markup you want. Include the tax rate and taxable items if tax applies. Keep the calculation with your job notes and use the selling price in the quote.
How do I avoid underpricing a job?
Start with the whole job cost. Include paid labor, material waste, hired equipment, travel and disposal when they apply. A second visit can use another trip, another setup and another block of time even if the repair itself is small. Keep units beside quantities: crew hours and elapsed hours are different, and buying a full pack of materials can cost more than the quantity you install.
Decide which percentage you mean before using it. Markup adds a percentage of cost; margin measures profit as a share of the selling price. A percentage selling fee is also taken from the final price, so simply adding that percentage to costs will leave a shortfall. For tax, use the rate and taxable items that apply to your business. The worked examples below use stated sample inputs so you can follow each step.
How do I use it?
Add the quantities and rates with units, including any travel, disposal or equipment cost. Say whether you want a margin on the whole job or a markup on cost, and give the percentage. Read the calculation and its assumptions, change any input that needs correcting, then use the total in your quote.
Start with a free account. Choose a paid plan from the pricing page when you need more; you can keep using your usual tools to send the finished work.
Worked example: materials, waste, labor, and tax
Example input: Materials $840; material waste 10%; labor 12 hours at $48 per hour; tax 6% on materials including waste; no other fee.
Materials with waste: $840.00 + ($840.00 × 10%) = $924.00 Labor: 12 × $48.00 = $576.00 Subtotal before tax: $924.00 + $576.00 = $1,500.00 Taxable materials: $924.00 × 6% = $55.44 Total: $1,500.00 + $55.44 = $1,555.44
Assumptions: the 10% applies only to materials, and the supplied 6% tax applies only to materials after waste. Confirm the real taxable base and rate for the job's jurisdiction.
Worked example: resale break-even price
Example input: Purchase cost $120; supplies $35; selling fee 13% of sale price plus $0.30; target profit $50; shipping excluded.
Required amount after percentage fee: $120 + $35 + $50 + $0.30 = $205.30 Sale price after 13% fee: price × 87% = $205.30 Break-even sale price for the target: $205.30 ÷ 0.87 = $235.98
At $235.98, the 13% fee is about $30.68; adding the $0.30 fixed fee leaves about $205.00 after fees, which covers $155 of costs and the $50 target profit. Shipping, tax, returns, promoted-listing fees, and rounding rules are not included.
Frequently asked questions
Why does adding my target margin to cost give the wrong price?
Because a margin is a share of the selling price, while that addition uses cost as the base. Divide cost by one minus the target margin as a decimal. Then subtract cost from the selling price and divide that profit by the selling price to check it.
Should I include my own time in labor?
Include the time the business needs to pay for, including your own work. Otherwise the remaining money can look like profit while also having to cover your pay. Keep your labor allowance and business profit as separate parts of the costing.
What if I change one material quantity?
Update the quantity and recalculate the whole job. Check waste, tax and any percentage fee that depends on the changed amount. If you are revising a customer quote, send the new total with a clear description of what changed.
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