Contractor Cost Calculator

Calculate comprehensive contractor project costs including trade labor hours, materials, subcontracts, equipment, overhead, and profit.

Materials Cost ($)

Estimated Labor Hours

Billing Rate per Labor Hour ($)

Subcontractor Fees ($)

Equipment & Dumpsters ($)

Overhead Markup (%)

Target Profit Margin (%)

Contractor Job Costing Formula

Total Quote = (Direct Materials + Direct Labor + Subs + Equipment) × (1 + Overhead %) / (1 - Profit %)

Direct Costs: Hard trade expenses that directly tie to project completion.
Overhead (10%): Indirect expenses including insurance, vehicle gas, office rent, licensing, and tools.
Profit (15%): Return on equity and risk capital necessary for business reinvestment.

Scenario: A remodel requiring $12,000 in materials, 80 labor hours at $65/hr, and $4,000 in subcontractors

Calculation Steps:

Result: The project proposal is $28,471, covering $22,000 in direct costs, $2,200 in company overhead, and generating $4,271 in net profit.

Estimates are based on standard national averages and current prevailing construction materials and contractor rates.
Actual trade bids may fluctuate according to local building code requirements, permit fees, and site topography.
Always obtain multiple written bids from licensed, bonded, and insured contractors before commencing work.

What is a typical contractor profit margin in residential construction?

Healthy residential remodeling contractors aim for a 15% to 20% net profit margin (which corresponds to a 25% to 35% markup on direct job costs).

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