Project Quote Calculator

About the Project Quote Calculator

Calculates a client quote from billable hours and your hourly rate, plus material costs and a markup percentage.

How to use this calculator

1. Enter the number of work hours, the hourly rate, the material cost, and the markup percent.
2. Make sure the hours and rate are in matching units, so labor cost is computed correctly.
3. Check that the markup is entered as a percent, not a decimal.
4. Read the quote result, which shows the final price after labor, materials, and markup are included.

The formula explained

The formula computes the quote by adding labor cost and materials first, then multiplying by a markup factor. In symbols, \( quote = (hours\\times rate + materials)\\times(1+\\text{tfrac}{markup}{100}) \).

• quote = the final project price
• hours = the number of hours worked
• rate = the hourly charge
• materials = the total material cost
• markup = the markup percentage added to cover profit or overhead

Step by step method

1. Compute labor cost with \( hours\\times rate \).
2. Add material cost to get the pre-markup subtotal, \( hours\\times rate + materials \).
3. Convert the markup percent to a multiplier using \( 1+\\text{tfrac}{markup}{100} \), then multiply to get the final quote.

Worked example

Problem. A job takes \( 8 \) hours at \( \$45 \) per hour, with \( \$120 \) in materials and a markup of \( 15\\% \). Find the quote.

1. First find labor cost, \( 8\\times 45 = 360 \).
2. Add materials, \( 360 + 120 = 480 \).
3. Apply markup, \( 480\\times(1+\\text{tfrac}{15}{100}) = 480\\times 1.15 = 552 \).

Tips and common mistakes

• Enter markup as a percent like \( 15 \), not as \( 0.15 \).
• If your quote seems too low, check whether you forgot to include materials before applying markup.

Frequently asked questions