Price a job to the margin you want
Add up direct cost: labor with payroll burden, drive time, materials with markup and subcontractors.
Job price and margin
firmkit.co/tools/job-price-margin-calculator/ · Oct 19, 2026
Example numbers, not yours.
Your calculation, step by step
- $420labor: hours x crew x wage x (1 + burden)
- $70drive time at the same loaded rate
- $540materials with your markup
- $0subcontract
- = $1,030direct cost
- / (1 - 25% - 15%)overhead and target margin come off the price
- = $1,717price
- 66.7%markup on cost
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Opens on this page the moment you press the button. Print it, save it, or mail a copy to yourself from there.
Your price, margin and markup stay free above.
- A rate card at four net margin targets
- A sensitivity table from 10 to 40 percent gross margin
- A printable quote worksheet with your numbers
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Your table and printable plan
This report uses the example numbers.
A planning aid, not accounting or legal advice.
Made with firmkit.co/tools/job-price-margin-calculator/. A planning aid, not accounting or legal advice.
How the numbers are worked out
The formula, in words
Labor = hours x people x wage x (1 + burden). Drive time uses the same loaded rate.
Direct cost = labor + drive + materials x (1 + markup) + subcontract
Price = direct cost / (1 - overhead share - target net margin)
Margin = (price - cost) / price. Markup = (price - cost) / cost. Markup = margin / (1 - margin)
If overhead plus target margin reaches 100 percent, the tool says not possible instead of showing a number. Overhead is applied as a percent of price, which is how most owners track it against revenue.
What the tool cannot know
- Your real overhead. It moves with the year and the size of the company.
- Callbacks, warranty work and change orders.
- Local market price. A price that works on paper can still lose the bid.
- Sales tax, licensing and permit costs unless you include them in materials.
Every assumption, and who set it
| Assumption | Value | Set by |
|---|---|---|
| Labor, drive, materials, subs | Your numbers | You |
| Payroll burden | Your number | You, ask your accountant |
| Overhead share | Your number | You |
| Target net margin | Your number | You |
| Rate card margins | 10, 15, 20 and 25% | Firmkit |
Sources
- No outside statistic is used. We show no industry margin figures because we have no primary source for them.
- Markup and margin convert by the algebra under the formula. A planning aid, not accounting or legal advice.
Source check
- Outside statistics. None used on this page
Questions people ask
What is the difference between markup and margin?
Markup is profit as a share of cost. Margin is profit as a share of price. A job that costs $600 and sells for $1,000 has a 40 percent margin and a 66.7 percent markup. Margin is always the smaller number. Mixing them up is how owners underprice work without noticing.
How do I find my overhead percent?
Add a year of costs that are not tied to one job: rent, office pay, trucks, insurance, software and marketing. Divide by the year’s revenue. If that is $250,000 on $1,000,000, overhead is 25 percent. Use your books or ask your accountant, and update it each year.
What does payroll burden mean?
Burden is what an employee costs beyond their wage: employer payroll taxes, workers compensation, insurance and any benefits. Add it as a percent of wages. A $28 wage with 25 percent burden costs $35 an hour. Your accountant or payroll provider can tell you your real rate.
Should materials carry a markup?
Many owners add one, because buying, hauling and warranting materials costs time and money. Whether you do is your call. If you pass them through at cost, set the markup to zero and make sure overhead covers that handling. The tool shows both choices if you try each.
Why is a 50 percent markup not a 50 percent margin?
Because they use different bases. A 50 percent markup on a $1,000 cost gives a $1,500 price, and the $500 profit is one third of that price, a 33.3 percent margin. To get a 50 percent margin you need a 100 percent markup.
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