Know the profit in your quote before you send it
A realistic job quote must cover materials, time and overhead. Compare markup and margin, apply a discount, and see the profit still left.
Build an estimate from actual costs
Margin is not markup
If a job costs $100, a 30% markup produces a $130 quote, while a 30% gross margin requires about $142.86. The same percentage can mean a very different profit.
Discounts reduce profit
Apply a discount only after establishing the full cost and a viable quote. A 10% client discount does not simply reduce profit by 10%.
Overhead belongs in cost
Vehicle costs, office time, insurance and rework can make a quote that covers labour and materials unprofitable in practice.
Questions and practical guidance
How do contractors calculate a bid price from a target margin?
Estimate direct costs, add overhead, then divide total costs by (1 − desired margin). With $1,000 cost and a 30% target margin, the suggested price is about $1,428.57 before discounts or taxes.
How do I calculate markup instead?
Multiply costs by (1 + markup percentage). A 30% markup on $1,000 cost creates a $1,300 quote. That is a gross margin of about 23.1%, not 30%.
Should I use this price as a final invoice?
No. Validate quantities, taxes, labour classifications, subcontractor costs, warranties and local regulations separately. This calculator is an estimating aid, not invoicing software.
Need an iPhone companion?
ScopeBid is an optional iPhone estimating and invoicing app that helps organize quotes, costs and gross margin. It is separate from this free arithmetic tool.
See ScopeBid: Estimate & Invoice on the App StoreFirst 3 quotes with PDFs are free; optional Pro subscriptions add more. The app works offline on iPhone and iPad. This web calculator stays free and separate.