How to work out what to charge for a job

Write down what the job costs you

You do not need software to work out a price. A pencil, a notebook and a few lines will do. Write one line for each cost of the job, then add the lines up.

• Materials: what you buy, plus a little for waste.
• Travel: trips to the site and to the supplier.
• Other people: a helper, a rented tool, a sub-contractor.
• Your own time: hours on the job times your hourly rate.
• Small extras: fuel, blades, screws, disposal.

The total is what the job costs you. It is not your price yet.

Add a cushion and a profit

Things go wrong. A trip gets repeated, a part is the wrong size. Your business also has to replace tools and keep going in a slow month. So add a percentage on top of your costs. Pick one you are comfortable with and use it the same way each time.

Adding a percentage to your cost is called markup. It is not the same as margin, which is a share of the price. The guide on markup vs margin shows the difference.

Worked example: a fence repair (made-up figures)

Materials $400. Travel $60. A helper for the day $150. Your own time, 10 hours at $50, is $500. Small extras $40.

Costs add up to $1,150. Add 20% as a cushion and profit (an example percentage, not a rule). 20% of $1,150 is $230. The price before Tax A and Tax B is $1,380. Add the tax lines you take from the official source on top.

Check your maths with the price calculator

If you want a second check, type the same figures into the price calculator. It is free to start, and you type every figure yourself. Nothing is sent. Keep your notebook page with the job, so you can see how you got the price.

Not sure what your own hour is worth? See the guide on working out your hourly rate. Then copy the notebook page for the next job and change the numbers.