How it works
- Enter materials, labor hours, wages and labor burden.
- Add subcontractors, permits and a contingency.
- Set overhead and your target profit margin.
- Read the price to quote and the profit it leaves.
Margin is not markup
Margin is profit divided by price. Markup is profit divided by cost. A 20% markup is only a 16.7% margin, which is why many contractors under-price jobs.
Do not forget overhead
Trucks, insurance, tools and office time are real costs even when they do not show up on a job. Load them in as a percent of direct cost.