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Free calculator · Business

Quote & Profit Calculator

Build a quote the right way round: start from your costs, add your markup and a buffer, and see the profit and margin before you send the number, not after the job is done.

The short version

A good quote starts with what the job costs you, then adds a markup for profit and a contingency for the unexpected. Add up labour, materials and other costs, pad it for the surprises, mark it up, and the price you land on is one you can actually make money at.

Quote price = (Costs + contingency) × (1 + markup)  •  Margin = profit ÷ price
1. Your costs

What the job actually costs you to do. Not the price yet.

hrs
$
Your rate, or what staff cost you
$
What you pay the supplier
$
Hire, skip, subcontractor, permits, disposal
2. Your pricing

The bit that turns a cost into a price worth doing.

%
Added on top of cost. This is your profit
%
A buffer for the surprises every job throws up
Quote this job at
$0
your price, with profit and a buffer built in
Labour$0
Materials$0
Other costs$0
Total cost$0
Contingency buffer$0
Your profit$0
Profit margin0%

A guide, not financial advice. Figures are estimates and ignore tax and VAT/GST. Always sense-check against your own accounts.

Markup is not margin (this trips everyone up)

Here is the mistake that quietly costs trades a fortune. You add 20% to your costs, so you assume you are making a 20% margin. You are not. A 20% markup is only about a 17% margin, because the profit is a slice of the bigger, marked-up price, not of the smaller cost.

Markup is the % you add to your cost. Margin is the % of the final price that is profit. Mark up by 25% and your margin is 20%. If you want a 30% margin, you need roughly a 43% markup.

The calculator shows you both, so you always quote to the margin you actually want, not the one you think you are getting.

Why contingency matters

Almost no job goes exactly to plan. A wall opens up, a fitting is wrong, the old work is a mess. Contingency is a small buffer, often 5 to 15%, that stops those surprises eating your profit. If you do not use it, great, that is extra margin. If you do, you are covered instead of out of pocket.

Quote the price, not the breakdown

Use this to work out your number behind the scenes, then give the customer a single, confident, fixed price for the job. You do not need to show them your labour rate or your markup. What they want is to know what it costs and that it will be done properly.

Questions tradespeople ask

What is the difference between markup and margin?
Markup is the percentage you add on top of your cost. Margin is the percentage of the final selling price that is profit. They are always different numbers. For example, a 25% markup gives a 20% margin, and a 50% markup gives a 33% margin. Quote to the margin you want, and use the markup to get there.
What profit margin should a tradesperson aim for?
It varies by trade and how you work, but many trade businesses aim for a net margin somewhere around 15 to 30% once everything is accounted for. The right number is one that covers your overheads and leaves you a genuine profit. Use the calculator to price to a target margin rather than guessing.
Should I mark up materials?
Most trades do, and rightly so. Sourcing, collecting, storing and guaranteeing materials is real work and real risk. Whether you add it as a separate materials markup or fold it into your overall markup, make sure the price covers it. In this tool your markup applies to the whole job, materials included.
How much contingency should I add?
A common range is 5 to 15%, higher for older properties, awkward access or anything you cannot fully see until you start. It is not padding the customer, it is protecting your margin against the surprises that come with hands-on work.
What should I use for my labour cost per hour?
Use what an hour of labour actually costs your business. For your own time, your true hourly rate is a good figure, work it out with the True Hourly Rate Calculator. For employees, use their cost to you per hour, not just their take-home pay.

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