How to Price Your Contracting Work Without Losing Money

Most contractors price jobs too low because they don't account for all actual costs.

Your true labor rate includes: your hourly pay + payroll burden (25-35%) + overhead per hour. If you target $45/hr with 35% burden and $12 overhead, your true cost is $72.75/hr.

Mark up materials 15-30%. Never charge clients your cost — you spend time sourcing, carry risk, and have capital tied up.

Account for overhead. Monthly overhead divided by billable hours = per-hour overhead allocation that belongs in every quote.

Add profit margin. To hit 20% margin on $8,500 in costs: $8,500 ÷ (1 - 0.20) = $10,625. Adding 20% markup only gives 16.7% margin — know the difference.

Once priced, create a professional proposal at ContractorQuoteKit in minutes.