Contractor pricing calculator
Estimate a job price from direct labor, materials, overhead, contingency, and target gross margin. Use the result as a planning aid, not a replacement for trade judgment.
Published by FlowSimple · Updated August 31, 2026
Planning result
Suggested selling price
$3,334.57
- Labor cost
- $672.00
- Base job cost
- $2,122.00
- Cost with contingency
- $2,334.20
- Planned gross profit
- $1,000.37
Planning aid only. Validate costs, taxes, scope, and market conditions before quoting.
What this calculator measures
The calculator adds direct and allocated costs, applies contingency, then divides by the remaining share after target gross margin. This treats margin as a share of selling price, not a markup on cost.
- Labor hours multiplied by hourly labor cost
- Material and subcontractor cost
- Allocated overhead for the job
- Contingency for known uncertainty
- Target gross margin percentage
Margin and markup are not the same
A 25% markup on $1,000 produces a $1,250 price and a 20% gross margin. To earn a 25% gross margin on $1,000 of cost, divide by 0.75 for a price of $1,333.33.
Review the result before sending
Check local market conditions, taxes, permit fees, disposal, travel, equipment, payment fees, warranty exposure, and scope risk. Confirm that your estimate explains assumptions and exclusions.
Frequently asked questions
What is the contractor pricing formula used here?
Total cost equals labor, materials, subcontractors, and overhead, increased by contingency. Suggested price equals adjusted cost divided by one minus the target margin rate.
Should labor cost include payroll burden?
Use the real hourly labor cost to the business where possible, including employer taxes, insurance, benefits, and other direct labor burden relevant to your accounting.
Does the calculator include sales tax?
No. Tax treatment varies by trade and jurisdiction. Add applicable customer taxes according to qualified local advice and your configured estimating process.
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