Estimate a project price from labor, materials, other direct costs, overhead, profit and optional sales tax.
Enable JavaScript to use the interactive calculator; the example and formula are described below.
Markup, margin, break-even, job estimates and profit calculations for pricing decisions.
Enter labor hours and rate, materials, subcontractors and other direct costs. Then add an overhead percentage, profit markup and optional sales tax. The result separates each layer so you can see how a customer estimate was built instead of applying one unexplained markup.
For 24 labor hours at $65/hour, $1,200 of materials and $150 of other direct costs, direct cost is $2,910. With 12% overhead and a 20% profit markup on cost plus overhead, the subtotal before tax is about $3,911.
Overhead covers indirect business costs such as office expenses, insurance, vehicles, software and administration. Profit is the amount added after costs and overhead in this simplified model. Your accounting method may classify costs differently.
Labor burden, permit fees, disposal, travel, contingency, financing costs, minimum service charges and tax rules can be important. Add them to the inputs or adjust the final estimate when they apply.
Start with 24 hours at $65 per hour, $1,200 materials and $150 other costs, then apply the entered overhead and profit settings.
Estimate direct costs separately from overhead and the profit amount needed for the business.
Supplier quotes, labor burden, sales tax, permit fees and whether profit is a margin or markup should be verified before bidding.
Related tools: Markup Calculator · Margin Calculator
This calculator applies profit markup after overhead is added. Businesses use different pricing methods, so adjust the percentages to match your policy.
No. It is a quick planning calculator for a single estimate, not a proposal, invoicing or job-costing system.
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