Contractor pricing
Time and Materials Pricing Calculator
Calculate a time and materials price from the labor charge, material cost, and material markup.
Inputs
Final price = Labor rate + Materials + (Materials x Markup %)
This calculator treats labor rate as the labor charge being billed for the time covered by this quote. Markup is applied to materials.
Keep the input narrow. If hours, equipment, or subcontractors also need to be billed, add those amounts to the labor charge before you rely on the final price.
Output
Use the final price as the billing amount for the labor charge and material cost entered here.
Final price
$2,230.00
Labor charge
The billed labor amount for this time period.
$850.00
Materials
Direct material cost before markup.
$1,200.00
Material markup
15% applied to materials.
$180.00
Practical check
If the labor charge is $850.00 and materials are $1,200.00, a 15% material markup produces a final price of $2,230.00.
How to use this calculator
Enter the labor amount you intend to bill for the time covered by the quote. Then enter the raw material cost and the markup percentage you apply to materials. The output is the amount to bill for that scope.
What each input means
Labor rate
Use the labor charge you plan to bill, not the worker wage. If your field crew will bill $850 for the visit, enter $850.
Materials
Enter the direct cost of the material used on the work. Do not include markup in this number.
Markup
Markup is added to materials to cover handling, purchasing time, waste, and profit. If your material cost is $1,200 and markup is 15%, the markup amount is $180.
Contractor example
An electrical contractor bills $850 for a service call and uses $1,200 in material. With a 15% material markup, the billed material amount becomes $1,380. The final time and materials price is $2,230.