Free tool
Job pricing and markup calculator
Enter labour, materials, overhead and the margin you want. Get the price that earns it, plus the markup and the profit in dollars.
Price to quote
$3,174.00
- Labour
- $720.00
- Materials and other direct costs
- $1,350.00
- Overhead
- $310.50
- Your cost
- $2,380.50
- Profit
- $793.50
- Markup on cost
- 33.3%
- Margin on price
- 25.0%
Price = cost divided by (1 minus margin). Nothing you type leaves your browser unless you ask for the results by email below.
How the price is worked out
- Labour is hours times your loaded hourly cost.
- Add materials and other direct costs for the job.
- Add overhead as a percentage of those direct costs. That gives your cost.
- Divide your cost by one minus your margin. That gives the price.
Example with the defaults: 16 hours at $45 is $720 of labour. Add $1,200 of materials and $150 of other costs for $2,070 direct. Overhead at 15% is $310.50, so your cost is $2,380.50. At a 25% margin the price is $2,380.50 divided by 0.75, or $3,174.00. Profit is $793.50, which is a 33.3% markup on cost.
Why margin, not markup
Bills, taxes and your own pay come out of the price, so margin is the number that matches your bank account. If you quote cost plus 25% you keep 20% of the price, not 25%. The calculator shows both so you can see the gap.
What it does not know
It does not know your market, your warranty risk or how much time you will lose to a return trip. For visits that come back unpaid, see how to get invoices paid faster. Once the price is set, CalSpark invoices carry it as line items.
Questions
What is the difference between markup and margin?
Markup is profit as a share of your cost. Margin is profit as a share of the price. A 25% margin is a 33% markup. Mixing them up is the most common reason a job makes less than you planned.
What should I put for overhead?
Add up a year of insurance, vehicles, tools, office rent, software, phones and non-billable wages. Divide by a year of direct job costs. The result is your overhead rate. The default of 15% is a placeholder, not a benchmark.
What labour rate should I use?
Use the loaded cost of an hour: wage plus payroll taxes, workers comp and benefits. Do not use the rate you charge the customer. That comes out of the final price.
Should I mark up materials?
Many shops do, because buying, hauling and warranty on materials cost real money. This tool prices the whole job to one margin. If you mark up materials separately, enter them at the marked-up amount.
Is the price it gives me what I should quote?
It is a floor built from your numbers. Local market rates, risk, access and how busy you are all matter too. Treat it as the lowest price that still makes the profit you asked for.
Does it save what I enter?
No. Everything stays in your browser. We record only that the tool was used, with no figures.
Keep reading
- How to get contractor invoices paid fasterInvoice the same day, record deposits and partial payments, offer card payment and chase late invoices without souring the customer.
- Invoicing and online card paymentsInvoices with line items, PDF and email, pay links, card payment of the balance through your own Stripe account, staff-recorded partial payments and refunds. Estimates convert to draft invoices.
- Field service software cost calculatorEnter your team size and compare a flat $49 a month with per-user pricing from public price lists. Runs in your browser, no login.
- What a small trades shop needs from field service softwareThe short list of features a 3 to 10 person shop uses every week, what it can skip, and how to test a tool with your own jobs.
Try it with your own jobs
14-day free trial. No card. $49 a month flat for up to 10 users after that.