Job Estimate Calculator

How a job estimate is built

A solid estimate is built from the bottom up, not guessed from the top down. You start with the direct costs of doing the work — the labor hours and the materials — then add overhead to cover the cost of simply being in business, and finally add profit so the job actually grows the company. Skip any layer and you either lose money or leave it on the table.

The trap most contractors fall into is pricing off gut feel or a flat "materials times two" rule. That ignores how long the job really takes, how many people are on it, and what it costs to keep the trucks running. This calculator makes each layer explicit so the price is deliberate.

The estimating formula and a worked example

Say a job takes 8 hours with a 2-person crew at $65/hr, plus $400 in materials. Labor is 8 × 65 × 2 = $1,040. Add materials for a base cost of $1,440. Layer on 15% overhead ($216) and your total cost is $1,656. To earn a 35% margin, divide by (1 − 0.35): the recommended quote is about $2,548, leaving roughly $892 in profit. The calculator above shows this breakdown instantly as you change any input.

Why margin, not markup

A common mistake is adding a "35% markup" and assuming you'll keep 35% of the price. You won't. Markup is a percentage of cost; margin is a percentage of price. A 35% markup on $1,656 is only a 26% margin. Because margin is what actually lands in your pocket relative to what the customer pays, pricing to a target margin — as this tool does — protects your profit far more reliably.

Good, Better, Best quoting

Once you know your cost and target price, the highest-converting move is to present three optionsinstead of one. A "Good" package meets the need at a lean price, "Better" adds value, and "Best" is the premium build. Tiered quotes anchor the customer's decision on which option rather than whether to buy — and they consistently raise average ticket size. Service Storm has Good/Better/Best quoting built in, so you can send all three tiers from one estimate.

Estimating mistakes that erode profit

• Underestimating hours. The single biggest profit leak — build in realistic time, including setup and cleanup.
• Forgetting overhead. If the price only covers labor and materials, the business itself is unpaid.
• Confusing markup with margin. It quietly costs you several points of profit on every job.
• Not accounting for crew size. Two techs for four hours costs the same labor as one tech for eight — price the labor, not just the clock.