Contractor Quote Calculator
Work out what to quote a client to hit your target profit margin.
Your inputs
Formula: quotation = total cost ÷ (1 − desired margin). Add GST separately on top if you're quoting a GST-inclusive price — this figure is your pre-GST base quotation.
Estimates only. Figures are indicative and do not constitute financial advice.
About the Contractor Quote Calculator
"What should I quote for this project," "contractor estimate calculator," or just a "rough estimate" for a client — these are all the same real question, and a lot of contractors answer it by gut feel or by matching a competitor's price, which can just as easily leave money on the table as price you out of a job. The reliable way is to work backward from your actual costs and a target margin, which is what this calculator does, whether you're preparing a formal quotation or just a rough estimate to give a client a starting number before finalising the scope.
Enter your material, labour, equipment/transport, and overhead costs, plus a contingency buffer for wastage, and set your desired profit margin. The calculator applies the standard pricing formula — required price = total cost ÷ (1 − desired margin) — rather than simply adding a markup, which is a common mistake: adding 20% to your cost doesn't actually give you a 20% margin on the final price, it gives you less. This gets you a defensible, cost-based number to quote before GST, which you add separately on top if applicable.
How to use this calculator
- Enter material, labour, equipment/transport, and overhead costs.
- Set a wastage/contingency buffer percentage.
- Set your desired profit margin.
- See your recommended pre-GST quotation.
Frequently asked questions
›Why doesn't adding a markup give the same result as a margin?
A 20% markup on a ₹100 cost gives ₹120, which is a 16.7% margin on that price — not 20%. Margin is profit as a percentage of the selling price, not the cost, which is why the correct formula divides cost by (1 − margin) instead of multiplying by (1 + markup).
›Should GST be included in the quoted price?
This calculator gives your pre-GST base quotation — add GST separately on top for a GST-inclusive quote to the client, since the applicable rate and treatment can depend on the specific contract.
›What if a competitor is quoting lower than my calculated price?
A lower competing quote either reflects a lower cost base, a lower margin (sometimes unsustainably low), or an under-costed project — this calculator at least tells you what you'd need to charge to hit your own target margin, so you can make an informed call rather than guessing.
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Read the full guide
Why a 20% Markup Never Actually Gives You a 20% Margin