Job Costing Calculator
Know your true job cost before you quote. Stop losing money on jobs that look profitable but aren't.
Labor
Labor cost: 1 × 4hrs × $35 = $140
Materials
Travel
Overhead & Margin
True Job Cost
Enter job details to see your true cost
What to Charge
Pricing recommendations will appear here
Understanding Job Costing
Why Most Contractors Lose Money
The #1 reason contractors fail isn't lack of work—it's underpricing jobs. Many only consider labor and materials, forgetting overhead, travel, and profit margin. A job that "makes money" on paper can actually lose money when you account for all costs.
The Hidden Costs
Your job cost includes more than labor and materials:
- • Travel time: You're paying workers to drive, not produce
- • Vehicle costs: Fuel, maintenance, insurance, depreciation
- • Overhead: Insurance, tools, office, software, training
- • Unbillable time: Estimates, callbacks, admin, sales
- • Warranty reserve: Money set aside for warranty work
Markup vs. Margin: The Profit Killer
Many contractors confuse markup with margin. If your costs are $1,000:
- • 30% markup = $1,300 price (23% margin)
- • 30% margin = $1,429 price (30% margin)
That $129 difference adds up to thousands per year in lost profit.
Healthy Margins by Trade
- • HVAC: 30-50% gross margin
- • Plumbing: 25-45% gross margin
- • Electrical: 25-40% gross margin
- • General Contracting: 20-35% gross margin
Net profit (after all expenses) is typically 8-15% for well-run service businesses.
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