The owner's workbench
Job cost calculator: job cost, margin and bid price
Job costing adds up everything a job really costs, including overhead, so you can see the margin you keep before you bid.
Illustrative example. Enter your own job; empty fields count as $0.00.
Your numbers
Your results
Total job cost
$10,080.00
Includes overhead of $30.00 per labor hour = $1,800.00
Profit
$2,920.00
Margin %
22.46%
Markup on cost %
28.97%
Bid needed for your target margin
Add a target margin %
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Guide: Job costing for contractors
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What-if scenarios
- Compare several scenarios side by side
- See which input moves the result most
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Estimates only. Results depend on your inputs.
Formulas
- Labor = labor hours × loaded cost per hour
- Overhead rate per labor hour = annual overhead ÷ annual billable hours
- Overhead applied = overhead rate × the job's labor hours
- Job cost = materials + labor + subcontractors + equipment + overhead applied
- Profit = bid − job cost
- Margin % = profit ÷ bid
- Markup on cost % = profit ÷ job cost
- Bid needed for a target margin = job cost ÷ (1 − target margin %)
Worked example
Illustrative example. Numbers are made up to show the math.
Materials $4,200.00; labor 60 hours × $38.00 = $2,280.00; subcontractor $1,500.00; equipment $300.00.
Overhead: $90,000.00 ÷ 3,000 hours = $30.00 per hour × 60 hours = $1,800.00. Job cost is $10,080.00.
A bid of $13,000.00 gives a profit of $2,920.00, a margin of 22.46% and a markup on cost of 28.97%.
How to use it
- Enter direct materials, labor hours and loaded cost per hour, subcontractors and equipment.
- Enter annual overhead and annual billable hours to apply overhead per labor hour.
- Enter your bid, or a target margin % to see the bid you need.
Questions owners ask
What goes into job cost?
Direct materials, labor at its loaded cost per hour, subcontractors, equipment for the job, and a share of overhead applied per labor hour.
How do I calculate an overhead rate per labor hour?
Divide annual overhead by annual billable hours. $90,000.00 ÷ 3,000 hours = $30.00 per labor hour, then multiply by the job's labor hours.
How do I set a bid from the margin I need?
Divide job cost by (1 − target margin %). Choose the target from your own numbers; a bid built from cost plus a markup can land below the margin you need.
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Sources
No external research cited. Calculations and illustrative assumptions are shown above; this is not evidence of a real owner outcome.
Educational content, not tax, legal or investment advice.
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