Add up materials, labor, and other costs, set the profit margin you want, and get the bid price — and the profit — for the job.
Margin is profit as a share of the BID (not cost) — the correct way to price so you actually keep that percent. Always cost your labor and materials honestly first. Estimate only.
Add your real costs, then divide by (1 − margin) to get a bid that leaves the profit you want. Dividing — not just adding a percent — is what makes the margin come out right; adding 25% to cost only yields a 20% margin.
Bid = total cost ÷ (1 − margin %) · Profit = bid − cost
Because margin is measured against the selling price. Adding 25% to cost gives only a 20% margin. Dividing by (1 − 0.25) gives a true 25% margin — the "equivalent markup" shows the difference.
Everything the job consumes: materials, labor (with burden), and other direct costs. Overhead and profit are what the margin adds on top.
Related: overhead & profit calculator · labor cost calculator · job estimate calculator · all free calculators.
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It uses standard formulas and recalculates the moment you change a value, so the math is exact for the inputs you enter. Treat the result as a reliable planning estimate; for decisions with legal or tax consequences, confirm the figures with a qualified professional.
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Last reviewed: September 2026. Free to use, no signup — Job Cost Calculator by ToolWise Digital.
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