GUIDE

How do I price a job as a contractor?

Q: How do I price a job as a contractor?

To price a job, calculate your total material costs, overhead, and labor, then add a profit margin. Use TradesTimer’s automated logs to review your actual travel distances and billable hours to ensure your quotes reflect your real-world expenses.

By Ryder Wishart — years on the tools, then time tracking in a contractor’s back office · Updated 2026-06-08

Calculate Your Base Costs

Start by totaling every direct expense required for the job, including materials, consumables, and any sub-contractor fees.

Don't forget to include your overhead, such as insurance, tool maintenance, and software subscriptions, as these must be covered by your revenue.

Determine Your Labor Rate

Your labor rate should cover your desired take-home pay plus the cost of your 'unbillable' time.

Review your history in TradesTimer to see how much time is spent on job sites versus driving. If you aren't accounting for the hours spent between stops, you are effectively working for free during those trips.

Factor in Travel and Mileage

Travel is a significant hidden cost. You can either charge a flat travel fee or build the cost of fuel and vehicle wear into your hourly rate.

Use the automatic mileage log in TradesTimer to track every trip between jobs. This provides the concrete data needed to see exactly how much distance—and therefore cost—is being added to your workday.

Add a Profit Margin

A sustainable business requires more than just breaking even. Once you have your total cost (materials + labor + overhead + travel), add a percentage for profit.

This margin is what allows you to reinvest in new tools, handle unexpected repairs, or grow your business.

FAQ

Should I charge a flat rate or an hourly rate?

Flat rates work well for predictable, standardized tasks, while hourly rates protect you on complex repairs where the scope might change.

How do I know if I'm losing money on travel?

Compare your total mileage and trip duration from TradesTimer against your total billable hours to see if travel is eating your profit.

Last updated 2026-06-08.