Free Job Cost Calculator
Price any job with materials, labor, overhead, and your desired margin. No signup required.
How to calculate job cost and price a job
Profitable pricing starts with knowing your true cost. Cost is materials + labor + overhead; price is cost + margin. Skip the overhead or margin step and you end up working for free.
The formula
Job cost = materials + (labor hours × labor rate) + overhead. Overhead is usually a percentage of the direct cost. Then price = job cost ÷ (1 − margin %).
Worked example
$1,200 materials + 20 hours × $45 labor ($900) = $2,100 direct cost. Add 15% overhead ($315) → $2,415 cost. For a 25% margin, price = $2,415 ÷ 0.75 = $3,220.
Markup vs. margin
They are not the same. A 50% markup on a $2,000 cost is $3,000 — but that is only a 33% marginon the price. Price on margin, not markup, to actually hit your target profit.
Job costing FAQ
How do I calculate job cost?
Add materials + labor (hours × rate) + overhead (a percentage of the direct cost). That total is your cost; add a profit margin on top to get the price you charge.
What is the difference between cost and price?
Cost is what the job takes you — materials, labor, and overhead. Price is what you charge: cost plus your profit margin. Confusing the two is how contractors stay busy but broke.
What markup or margin should I add?
It varies by trade, but 20–40% gross margin is common for service work. Note markup and margin differ: a 50% markup on cost equals a 33% margin on price.
What is overhead?
The indirect costs of running the business — insurance, vehicles, office, software, admin time — spread across your jobs, usually as a percentage of direct cost.
How do I price a job to be profitable?
Capture every material and labor hour, add realistic overhead, then apply a margin that still leaves profit after everything. Underestimating labor and overhead is the top cause of unprofitable jobs.
What is job costing?
Tracking the actual cost of each job — materials, labor, and overhead — so you know which jobs and services truly make money, not just which bring in revenue.
Want to automate your invoicing, estimates, and job costing?
HelmarOps calculates job costs from templates, tracks actual vs estimated, and alerts you when margins slip.
See Pricing