Contractor Estimate Calculator

The pricing model this calculator uses

Most contractors who go out of business priced as direct cost + a number that felt right. The cost-plus model used here is the industry standard and the only one that scales:

1. Direct cost = labor + materials. The actual hours and materials a job will consume.
2. + Overhead = a percentage that covers your indirect costs (vehicles, insurance, admin, the time you spend estimating). Typically 10-15% for small residential.
3. + Profit = what you keep after covering direct cost and overhead. Typically 10-20% for residential.
4. + Sales tax if applicable in your state on the work being performed.

Total estimate = the price you quote the client. Skipping overhead or markup can put a job at break-even at best — real-world surprises (a bad delivery, a sick day, a tool that breaks) come out of margin that does not exist unless you priced it in.

Example: a small kitchen remodel

A small contractor estimates a 2-week kitchen refresh:

• Labor: demo $1,500 + rough-in $2,000 + finish $3,500 = $7,000
• Materials: cabinets $4,500 + countertop $2,200 + fixtures $800 + miscellaneous $500 = $8,000
• Direct cost: $15,000
• Overhead at 12%: $1,800
• Profit at 15%: $2,520
• Subtotal before tax: $19,320
• State sales tax on materials only at 8%: $640
• Total estimate: $19,960

The mistake junior contractors make: they quote $15,500 (a little over direct cost) thinking they'll “make it up on the next one.” They don't. The next one quotes the same way. After a year of breakeven jobs, they close.

Why a written estimate has to do more than show a number

A contractor estimate that is just a number on a sticky note loses to a competitor whose estimate is on a formatted document — even when the price is identical. Clients shopping multiple contractors use the estimate document itself as a proxy for how organized the rest of the job will be. A professional estimate includes:

• Your business name, license number, and contact info
• Client name and project address
• A clear written scope of work (what's included, what's NOT)
• Itemized labor and materials lines
• Overhead, profit, and tax shown transparently (or rolled into the price)
• Estimate expiration date (30 days standard)
• Deposit and payment schedule
• Exclusions and assumptions
• Signature block

All of that is in the Contractor Estimate & Quote Pack — a formatted, fillable template you customize once and reuse for every estimate.

For contractors running multiple jobs

If you have more than 3-5 jobs in flight at any time, a single estimate template stops being enough. You need a project control workbook to track estimates, deposits, change orders, materials orders, payment schedules, and final billings across every active project — without losing one in a paperwork shuffle.

Related contractor resources

• How to write a contractor estimate that wins jobs
• 5 mistakes contractors make on estimates
• How to fill out a change order
• What is a scope of work
• Contractor estimate template guide
• All contractor templates

Contractor estimate FAQs