Job Quote Calculator: Price a Job With Overhead and Profit

A quote has to do two jobs at once: win the work and leave you with a profit after every cost is paid. This calculator builds the price from the bottom up, so you can see where every dollar goes before you send it.

How the price is built

1. Labor: hours on site × people on the crew × what an hour of work costs you. For employees, that is the wage plus payroll taxes, workers’ comp and benefits, not just the hourly wage. If you work alone, use the pay per hour you want to earn.
2. Materials: your cost, plus an optional markup.
3. Other job costs: anything this job needs that you wouldn’t buy otherwise, like permits, dump fees, equipment rental or extra travel.
4. Overhead: a percentage on top of the direct costs to cover what keeps the business running: vehicles, insurance, the office, software, and the hours you spend quoting and invoicing.
5. Profit margin: the price is grossed up so that, after all of the above, the share you chose is left as profit.

Sales tax, if it applies, is added last, on materials only or on the whole job.

Markup vs margin: the mistake that eats profit

If you want a 20% margin, adding 20% to your costs is not enough. A $1,000 job marked up 20% sells for $1,200, and $200 ÷ $1,200 is a 16.7% margin. To keep 20% of the price, you need a 25% markup.

The calculator shows both numbers: the real profit margin (profit ÷ price) and the equivalent markup on all your costs. If your materials markup is high, your real margin ends up above the target, because the markup is extra profit on top.

Sales tax: check your state

Whether you charge sales tax, and on what, depends on your state and the type of job. Some states tax only the materials, others tax some services, and repairs are often treated differently from new installations. The calculator only applies the rate you type. It does not know your state’s rules, so confirm with your state department of revenue or your accountant.

Check the quote against your hourly rate

Divide the price before tax by the crew hours. If the result is below the rate from the hourly rate calculator, the job is underpriced, or your hours estimate is too optimistic.

Estimating software can store your labor rates, markups and price lists so every quote is built the same way. That consistency usually matters more than which app you pick.

The example values are made up to show how the calculator works.