What should I charge? Build the bid from your real costs
Add up your materials, labor, and costs, then add a markup for overhead and profit. Your bid and profit margin update as you type.
Price a job the way contractors actually do it: add up what the job costs you, then add a markup for your overhead and profit. Fill in your numbers — your bid updates as you type.
| Materials & supplies | $0 |
| Your labor (0 hrs × $0) | $0 |
| Hired help | $0 |
| Other direct costs | $0 |
| Your costs (subtotal) | $0 |
| Markup (30% — overhead & profit) | $0 |
| Bid price | $0 |
Pricing method and standard percentages from contractor-industry sources (Angi, Buildern, NAHB): overall contractor markup 20–30%, materials markup 7.5–35%, labor markup 25–50%, recommended profit margin 15–25%. A markup is a percentage of your costs; the resulting margin (share of the bid that's profit) is lower — both are shown above. These are general benchmarks, not a guarantee for your market.
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How the bid is built
Your bid is your direct costs — materials and supplies, your labor (hours × your rate), any hired help, and other costs like fuel or disposal fees — plus a markup that covers overhead and profit:
Bid = (materials + labor + other costs) × (1 + markup%).
Profit = bid − direct costs. Margin = profit ÷ bid.
Published contractor guidance (Angi, NAHB) puts a typical overall markup at 20–30%. Markup and margin are not the same number: a markup is a percentage of your costs, while the margin is the share of the bid that is profit, and it comes out lower — a 30% markup is about a 23% margin. The calculator shows both.
How to use this calculator
Enter the five numbers that make up a job:
- Materials — everything you buy for the job: parts, supplies, rentals, priced at what you pay.
- Labor hours — the hours you expect the work to take.
- Your hourly labor rate — the rate you price your time at.
- Other direct costs — fuel, disposal or dump fees, permits, a hired hand for the day, equipment rental.
- Markup — the percentage added on top for overhead and profit.
As you type, the calculator shows your bid, your profit on the job, and your profit margin.
Terms, defined
- Direct costs — what a specific job costs you: materials, labor, and other job-specific expenses.
- Overhead — the costs of being in business that no single job pays for: insurance, tools, a vehicle, licensing, admin time, and slow weeks.
- Markup — a percentage added to direct costs to cover overhead and profit.
- Margin — the share of the final bid that is profit; always lower than the markup that produced it.
Frequently asked questions
Does the bid include the taxes I will owe?
No. The bid reimburses your materials, labor, and costs; your income tax and self-employment tax are owed on the profit. Nothing is withheld from self-employment income — it is paid to the IRS in quarterly estimated payments (Form 1040-ES). See what to set aside for taxes.
Can I use this for freelance or creative work, not just trades?
Yes. Any work priced from your own time and costs fits: leave materials at zero if there are none, enter your hours and rate, and add a markup for overhead.