What should you charge? Two free calculators
What an hour of your crew's time costs and what to charge for it, and markup vs margin with the price for the margin you want — free, with nothing you type leaving the page.
Two of the questions contractors ask most about pricing now have free calculators beside the job profit one, at smgtools.com/calculators. Both work in your browser, show how every figure was worked out, and send nothing anywhere.
What should you charge an hour? Put in the wage and what you pay on top of it — payroll taxes, workers’ comp, insurance, time off — the hours a year and the share you bill to customers, your overhead and the people who bill, and the profit you aim for. It shows what an hour costs you, what each hour you bill has to carry for the unbilled ones and the overhead, and what to charge for it. Those two figures are exactly what a labor rate holds in SMG Tools: its cost rate, which job costing counts for every hour on a job, and its billable rate.
Markup vs margin. Put in a cost and any one of a markup, a margin or a price, and see the other two and the profit. A 25% markup leaves a 20% margin; keeping 25% takes a 33.3% markup. Two tables on the page set the markups contractors use beside the margins they leave, and the margins they aim for beside the markups they take. The price for a margin is the one SMG Tools’ Price Book recommends.