Contractor

Contractor Estimate Calculator

Build a planning estimate from labor hours, labor rate, material cost, and an overhead-and-profit markup.

This estimate is for planning only. Confirm taxes, permits, insurance, material pricing, contract terms, and local requirements before quoting work.

How to use this tool

How to use the Contractor Estimate Calculator

Estimate labor hours and rate, add direct materials, then apply a combined overhead-and-profit percentage to the direct-cost subtotal.

Estimate labor hours and hourly labor rate.
Add current material costs.
Choose an overhead-and-profit markup and calculate the estimate.

Method

Formula or calculation method

Direct cost = labor hours × labor rate + materials. Estimate = direct cost × (1 + overhead-and-profit percentage).

Interpretation

What the result means

The result is a proposed estimate before project-specific taxes, permits, subcontractors, unusual risk, or contract adjustments.

Example

Worked example

80 hours at $75 plus $4,200 of materials equals $10,200 direct cost. Adding 25% produces a $12,750 estimate.

Avoid

Common mistakes

Do not confuse markup with margin. Also account for travel, disposal, subcontractors, permits, change-order risk, and non-billable project time when applicable.

Best use

When to use it

Use it for early job pricing, scope discussions, quote review, and testing how labor or material changes affect a project estimate.

Common questions