THE CONTRACTOR TOOLBOX / 07
What to charge.
So the job makes money.
Most underpricing comes from three gaps: the true cost of an hour, the overhead nobody adds, and confusing markup with margin. Fill in one job and see the price that covers all three.
1. What an hour of work really costs you
Your true cost: $47 per billed hour, not $28.
2. The job
3. Your business
4. Check a price you already gave Optional
PRICING ON EVERY QUOTE
Your prices built
into your quoting.
We set up your rates, your overhead and your margin in a quoting tool, so every estimate your team sends makes money.
Tell us your trade and how you price today.
A few useful details
What is the difference between markup and margin?
Markup is what you add on top of cost. Margin is the share of the price you keep. Adding 15% to your cost does not give you a 15% margin; it gives you about 13%. This calculator sets profit as margin and shows the markup it takes.
How do I find my overhead percentage?
Add up last year’s business costs that are not tied to one job: truck payments, fuel, insurance, phone, software, office, marketing, your bookkeeper. Divide by last year’s total job costs (labour, materials and job expenses). That share is your overhead percentage.
Why does my own time count as a wage?
If the price only works when you work for free, the business is not making money, you are. Paying yourself a wage in the price means profit is profit.
Is anything saved or sent?
No. Everything is calculated in your browser and disappears when you leave the page.