Free contractor pricing guide
How much should you charge for a job?
The right price covers every real cost, protects the business from normal surprises, and leaves the profit margin you need. A quick materials markup alone can miss labor burden, overhead, disposal, drive time, permits, and rework risk.
1. Count direct costs
Add materials, subcontractors, rentals, disposal, permits, and other costs tied directly to the job. For labor, use the business's true hourly cost—not simply the employee's wage or the rate charged to customers.
2. Include overhead
Insurance, vehicles, fuel, software, tools, office time, advertising, and non-billable work still have to be paid. Allocate a reasonable amount of overhead to each job.
3. Add contingency
A small contingency can protect against ordinary estimating uncertainty. It is not a substitute for a clear scope, change-order process, or site inspection.
4. Choose margin, not markup
Markup is added to cost; margin is the share of the selling price that remains after job cost. They are not the same. For example, a 25% margin requires dividing cost by 0.75.
5. Check the market and the job
The formula gives a financial starting point. Confirm scope, local demand, taxes, licensing rules, customer expectations, and the risk of the specific job before sending a formal estimate.
One-time purchase for lifetime access to this version. IronConX QuickPrice is planning guidance and does not replace accounting, tax, legal, licensing, estimating, or contract advice.