Contractor pricing
Minimum Job Price Calculator
Determine the lowest job price that covers direct cost, overhead, and the minimum profit you require.
Inputs
Direct cost = Labor + Materials + Subcontractors
Cost before profit = Direct cost + Overhead allowance
Minimum viable price = Cost before profit / (1 - minimum profit %)
Results
This is the pricing floor for the job as entered.
Direct cost
$7,400.00
Overhead allowance
$1,110.00
Cost before profit
$8,510.00
Minimum viable price
$9,670.45
Pricing below $9,670.45 means the job does not fully cover direct cost, overhead, and your minimum profit requirement.
How to use this number
Treat it as a floor
The result is the lowest sale price that keeps the job whole. It is not a negotiating target. It is the point below which the work starts weakening the business.
Keep overhead inside the quote
Direct cost alone is not enough. Vehicles, supervision, estimating, office time, insurance, and software still need to be carried by the job.
Contractor example
Small remodel pricing
A contractor carries $3,200.00 in labor, $2,400.00 in materials, and $1,800.00 in subcontractor cost. With 15% overhead, the job needs $8,510.00 before profit.
Minimum acceptable price
If the minimum acceptable profit is 12%, the quote needs to start at $9,670.45. Pricing below that number turns a planned profit job into a cost recovery job.
Related resources
Clear pricing starts with a floor you can defend.