Project Quote Calculator

How it works

A fixed quote starts from the hours you expect the job to take times your hourly rate. A contingency percent is added to that labour figure to absorb estimate risk, and expenses you will pay on the client's behalf are added at cost. The total is the fixed project price; the deposit is a percentage of it and the balance is the rest.

Once the price is fixed, every extra hour lowers what you earn per hour. The effective hourly rate divides the fee you keep (labour plus contingency, not the pass-through expenses) by the hours the job actually takes. While actual hours stay within the contingency the effective rate stays at or above your hourly rate; beyond it the rate falls below.

Formula

labour         = estimated hours × hourly rate
quote          = labour × (1 + contingency %) + expenses
deposit        = quote × deposit %;   balance = quote − deposit
effective rate = labour × (1 + contingency %) ÷ actual hours

Example

A 40-hour job at $75 an hour is $3,000 of labour. A 15% contingency adds $450 and $250 of expenses brings the fixed quote to $3,700. A 50% deposit is $1,850, leaving $1,850 on completion. The fee kept is $3,450, which is $86.25 an hour at 40 hours; if the job takes 50 hours it falls to $69.00 an hour.

A job costed at 20 hours at $140 ($2,800), plus 35% of that labour ($980) and $520 of direct expenses, totals $4,300.

Assumptions and limitations

• Contingency, rate and deposit are assumptions you enter; the calculator does not suggest what they should be.
• Expenses are billed at cost with no markup. If you mark up expenses, add the markup to the expense figure; it is then counted as pass-through, not as hourly earnings.
• Taxes, sales tax on the invoice, payment fees and any overhead you carry are not included.
• Results are for informational and educational purposes and are not financial, tax, legal or accounting advice; contract and deposit terms are governed by your agreement and local law.

Frequently asked questions