Estimate the job
Contractor Job Cost Calculator
Calculate the true cost of a contractor job and the minimum price needed to protect your target margin.
QuoteFormula · The formula for profitable jobs.
Job cost estimate
Crew and labor
- Lead technician: 20 hr × $48/hr
- $960
- Helper: 20 hr × $32/hr
- $640
- Total loaded labor
- $1,600
Direct costs
- Materials
- $2,500
- Equipment
- $300
- Travel and mobilization
- $120
- Permits and inspections
- $80
- Disposal
- $50
- Total nonlabor direct costs
- $3,050
True cost and price
- Allocated overhead
- $600
- Contingency
- $263
- True job cost
- $5,513
- Minimum price before tax
- $7,656
- Payment processing fee
- $230
- Expected profit
- $1,914
- Sales tax
- $0
- Customer price
- $7,656
Planning estimate based on figures entered in this browser. Not a guarantee of cost or profit.
Reusable assumptions
Business Cost Profile
Saved only in this browser. Replace every sample default with your real business figures.
Labor cost preset source
Apply a reviewed starting point or keep your own figure. Every value stays editable.
Current loaded cost: $42.00/hr entered in this profile.
No reviewed US wage presets are available yet. Enter your own loaded labor cost above; QuoteFormula does not substitute a market average for your payroll figures.
Loading browser profile…
Crew
Labor roles and hours
Other job costs
Direct cost assumptions
Result
True cost and profitable price
minimum price = true job cost ÷ (1 − target margin − processing rate)Compare margin scenarios
The same true job cost at three target margins. A markup on cost is not the same as a margin on price, so the markup column shows what each price adds on top of your cost.
| Target margin | Price before tax | Expected profit | Markup on cost |
|---|---|---|---|
| 20% | $7,159 | $1,432 | 29.9% |
| 25% | $7,656 | $1,914 | 38.9% |
| 30% | $8,228 | $2,468 | 49.3% |
Local job history
Saved jobs
Saved only on this device. No account, server, or cloud sync.
No saved jobs yet. Name this estimate and choose Save job.
Prefer a spreadsheet? Download the free job-costing workbook.
Your next step
Contractor Pricing Calculator
Solve for the minimum profitable price that preserves margin after payment-processing costs.
Continue to profitable pricingThe method behind these numbers
How to calculate the true cost of a contractor job
A job cost is only useful when it includes everything the job consumes. This guide shows the categories, the formula, and a full worked example you can follow with your own numbers.
What this calculation tells you
Short answer. A contractor job cost is the total cost of delivering one specific job: loaded labor for every crew member, nonlabor direct costs such as materials and equipment, an allocated share of business overhead, and a contingency allowance for ordinary uncertainty. It is not the invoice amount and it is not the customer price. QuoteFormula calculates it as loaded labor + direct costs + allocated overhead + contingency. Loaded labor uses the real hourly cost from your labor-burden calculation, not the base wage. Overhead is allocated per billable hour so every job carries its share of keeping the business open. Contingency covers scope uncertainty you have already priced; it is not profit. Keep the categories separate until the total, then compare the result with the minimum profitable price before sending a quote.
How this calculator works
The formula
true job cost = loaded labor + direct costs + allocated overhead + contingencyHow to use it
- Add each crew role with the hours and loaded hourly cost from your labor-burden calculation.
- Enter materials, equipment, subcontractors, travel, permits, disposal and other costs that belong to this job.
- Set overhead per billable hour and contingency, then review true cost before accepting the suggested price.
Reading the result
True job cost is the floor beneath the quote, not the customer price. The minimum-price result adds target margin and payment processing. If the price seems too high, revisit scope, productivity or supplier costs rather than deleting overhead or contingency.
Worked example
Illustrative example: 48 crew hours at loaded rates cost $2,232. Materials, equipment, a subcontractor, travel, permits and disposal add $2,960. The $5,192 direct total plus 48 hours of $18 overhead ($864) gives $6,056. A 5% contingency adds $302.80, for a true job cost of $6,358.80.
Limitations
- The estimate is only as reliable as the hours, quantities and prices you enter.
- Contingency covers ordinary uncertainty in the scope you priced; it is not profit and does not replace a change order.
- Saved jobs stay in this browser. There is no cloud backup or multi-device sync.
Read the calculation methodology for the contracts behind every result or the full guide, How to calculate the true cost of a contractor job.
Frequently asked questions
- Is job cost the same as the customer price?
- No. Job cost is the floor: labor, direct costs, allocated overhead and contingency. Price adds target margin and payment-processing costs. A quote at cost leaves nothing for profit or unexpected scope.
- Does contingency count as profit?
- No. Contingency covers ordinary uncertainty in the scope you priced. It is part of cost, not margin, and it does not replace a change order when the customer adds work.
- Should every job carry overhead?
- Yes. Every job uses the business's capacity, even if it does not use the office that day. Allocating overhead per billable hour makes each job carry a fair share instead of leaving fixed costs uncovered.