Job Costing Calculator

Markup is the percentage added to your cost to arrive at the selling price (e.g., cost $10,000, markup 25% = bid $12,500). Gross margin is the profit as a percentage of the selling price (e.g., $2,500 profit / $12,500 bid = 20% margin). Most contractors think in markup but banks and investors evaluate in margin — know both numbers.

Overhead rates vary significantly by industry. Construction GCs typically run 10–15% of direct costs. Trucking is often 12–18% due to fuel, maintenance, and insurance. Landscaping is typically 8–12%. The best approach is to calculate your actual annual overhead (rent, admin salaries, insurance, utilities, vehicle costs) and divide by your annual direct costs to get your real overhead rate.

Material waste is a real cost that most contractors underestimate. Lumber waste from cuts, concrete overpour, paint overage, and damaged materials are all common. A 5–10% waste factor is standard for most materials; complex or custom work may warrant 15–20%. Failing to account for waste is one of the most common reasons jobs come in over budget.

Labor burden is the cost of employing someone beyond their base wage — payroll taxes (FICA, FUTA, SUTA), workers' comp, benefits, and PTO. For a $25/hr worker, the true cost including burden is typically $30–$35/hr. If you price jobs using the base wage, you're systematically underpricing every job. Use our Payroll Burden Rate Calculator to find your exact burden rate.

Target margins vary by industry and business model. General contractors typically target 15–25% gross margin. Specialty subcontractors often target 20–35%. Service businesses (landscaping, cleaning) typically target 25–40%. These are gross margins — your net profit after overhead will be lower. The industry defaults in this calculator are based on typical small business benchmarks.