What is job costing in construction?

Job costing is the process of tracking all costs associated with a specific construction project, including materials, labor, equipment, overhead, and profit margin. It helps contractors price jobs accurately and maintain profitability.

What profit margin should contractors use?

Most contractors aim for a 10-20% profit margin after overhead. Specialized work may command higher margins (20-35%), while competitive commodity work may be lower (5-10%). Your margin should account for business risk, complexity, and market conditions.

How do I calculate overhead costs?

Overhead includes all business expenses not directly tied to a specific job: office rent, insurance, utilities, administrative salaries, vehicles, and equipment. Calculate your annual overhead and divide by expected revenue to get your overhead percentage (typically 10-15%).

Should I include contingency in my job cost estimate?

Yes! Always include a contingency (typically 5-10%) to cover unexpected costs, price fluctuations, and scope changes. This protects your profit margin and prevents jobs from going over budget.

Free job cost calculator

Calculate your total project cost including materials, labor, overhead, and profit margin. See your break-even point and profit instantly.

Project Information

Project Name

Currency

Date

1 Direct Costs

Materials Cost

Labor Hours

Hourly Rate

Equipment & Tools

Subcontractors

Permits & Fees

2 Overhead & Profit

Overhead %

Profit Margin %

Notes (optional)

Cost Breakdown

Materials

Labor

Equipment

Subcontractors

Permits

Direct Costs

Overhead (%)

Profit (%)

Total Project Cost

Break-Even

Labor %

Real-time calculations

See costs update instantly as you type

Profit visibility

Know exactly how much you'll make

Professional reports

Download detailed PDF cost breakdowns

Track profitability across all your jobs

SiteSignOff automatically tracks actual costs vs estimates, showing real profitability for every job.

Try SiteSignOff free

How to Price a Job

What should my profit margin be?

Most contractors aim for 15-25% profit margin. Service work often has higher margins (20-30%) while larger construction projects may be 10-20%. Factor in your business goals and market competition.

How much overhead should I include?

Typical overhead ranges from 10-20% of direct costs. This covers insurance, office expenses, vehicle costs, tools, and other indirect expenses. Track your actual overhead monthly to set an accurate rate.

What's the difference between markup and margin?

Margin is profit as a percentage of the total price, while markup is profit as a percentage of costs. A 20% margin equals approximately 25% markup. This calculator uses margin, which is more intuitive for pricing.