Job Costing Calculator
Estimate the total cost and minimum bid price for a job by factoring in labor, materials, subcontractors, overhead, and your desired profit margin.
Include wages, payroll taxes, workers' comp, benefits (~1.25–1.40× base wage)
Typical range: 10–25% to cover handling, waste, and procurement time
Typical range: 5–15% to cover coordination and liability
Applied to direct labor cost. Covers rent, insurance, vehicles, admin (typically 15–30%)
Typical contractor net profit: 10–20%
Formulas Used
Direct Labor Cost = Labor Hours × Fully Burdened Labor Rate
Overhead Cost = Direct Labor Cost × (Overhead Rate ÷ 100)
Materials with Markup = Materials Cost × (1 + Materials Markup ÷ 100)
Subcontractor with Markup = Sub Cost × (1 + Sub Markup ÷ 100)
Total Direct Cost = Direct Labor + Overhead + Materials (marked up) + Subs (marked up)
Minimum Bid Price = Total Direct Cost ÷ (1 − Profit Margin ÷ 100)
The bid price formula ensures profit margin is calculated on the selling price (gross margin), not on cost (markup). A 15% margin on price ≠ 15% markup on cost.
Assumptions & References
- Fully Burdened Labor Rate includes base wages plus payroll taxes (FICA ~7.65%), workers' compensation, general liability insurance, and benefits — typically 1.25–1.40× the base hourly wage. (NAHB, 2023)
- Overhead Rate is applied to direct labor and covers indirect costs: office rent, vehicle expenses, tools, software, and administrative salaries. Industry average is 15–30% of direct labor. (Construction Financial Management Association)
- Materials Markup of 10–25% is standard to cover procurement time, storage, waste, and price volatility risk. (RSMeans Cost Data)
- Subcontractor Markup of 5–15% covers coordination, scheduling, and the general contractor's liability exposure.
- Net Profit Margin of 10–20% is typical for residential and commercial contractors after all costs. (CFMA Annual Financial Survey)
- This calculator does not include sales tax, permit fees, bonding costs, or contingency reserves — add those to materials/subs as appropriate.
- Results are estimates. Actual costs vary by region, trade, project complexity, and market conditions.