Job price calculator

How do you work out the price of a job?

Add up four things: your labour (people x time x rate), your materials at cost plus a markup, any call-out, travel, skip or waste charges, and a contingency for the unknowns. That gives the price before VAT. If you're VAT registered, add VAT on top. The calculator above does each step and shows the sum.

Your labour rate is where your overheads live. It has to pay for the van, fuel, insurance, tools, phone, accountant, your time off and your tax, as well as your wages. If you're not sure your rate covers all that, work it out with the day rate calculator first, then use the figure here. There's more on this in our guide to pricing a job.

What's the difference between markup and margin?

Markup is what you add on top of the cost. Margin is the share of the selling price that's profit. Materials that cost £100 with a 20% markup sell for £120: that's £20 profit, which is a 16.7% margin, not 20%. The calculator shows both, so you know what you're really making.

How much should you mark up materials?

There's no set figure; it's your call. The markup pays for the time spent pricing, ordering and collecting materials, for returns and wastage, and for the money you're out of pocket until the customer pays. On bigger jobs, taking a deposit to cover the materials removes most of that last risk.

If you'd rather show materials at cost, set the markup to 0 and make sure your labour rate carries the extra. Either way, the customer sees one price for materials on the quote, not your merchant invoice. Our guide to taking a deposit covers how much to ask for and when.

Should you add a contingency to a quote?

On work where you can't see everything up front, such as old wiring, rotten joists or hidden pipework, a contingency covers the extra time and parts. Either build it into your prices or show it as a separate line and explain it. Agree in writing what happens if the unknowns turn out bigger than the allowance.

This calculator adds the contingency as its own line. When you turn the result into a quote you can keep that line, rename it, or delete it and spread the money across the other lines. If the job has too many unknowns for a fixed price, read quote or estimate before you send anything.

Do you add VAT to the price you quote?

Only if you're VAT registered. Registered businesses must charge VAT on what they sell unless it's exempt, and you have to register before you can charge it. Most building work is standard-rated at 20%. Some work on homes is zero-rated or reduced-rated at 5%, depending on the job and the building.

HMRC sets out which building work gets which rate in VAT Notice 708. Whatever you charge, make it clear on the quote whether the price includes VAT. For the rest of the rules, see VAT for tradespeople or the VAT calculator.

What does this calculator leave out?

It prices one job from the figures you give it. It doesn't know your overheads, so your labour rate has to cover them: van, fuel, insurance, tools, phone, accountant, time off and tax. If you're not sure your rate does, use the day rate calculator to find the rate you need, then come back.

Figures are rounded to the penny on each line, and the totals add up the rounded lines, so they match the quote exactly.