What markup should a general contractor charge on materials?

10–20% on materials and subcontractor costs is standard for GCs. On materials you purchase directly, 15–20% covers sourcing, transport, and warranty. On subs, 10–15% covers coordination and risk.

What profit margin should a general contractor target?

15–25% net margin is typical, with larger projects trending toward the lower end. Always apply margin to total costs — don't confuse margin with markup.

Do I need permits for general contracting work?

Most structural, mechanical, and finish work requires permits. Always pull permits — they protect you legally and are a pass-through line item on the client invoice.

How do I calculate overhead as a GC?

Add up all fixed monthly costs — office, insurance, vehicles, admin, software — and divide by your monthly billable hours. That per-hour overhead figure goes into every bid.

Should I charge a warranty reserve on GC projects?

Yes. A 5% reserve per project funds punchlist work and warranty callbacks without eating your profit. Build it into every bid.

General Contractor Job Pricing Calculator

Labor

Lead labor hours Your hours on site / admin time

hrs

Your loaded hourly cost Your wage + payroll burden

$ /hr

Crew / helper hours Total hours for all crew members

hrs

Crew loaded hourly cost Their wage + payroll burden

$ /hr

Materials

Materials cost (raw) Your actual cost from supplier

Materials markup 10–20% is typical for GC work

Job Costs

Mobilization fee Site setup, equipment delivery

Permit & inspection fees Pass-through to client

Overhead

Monthly overhead Insurance, vehicles, admin, office…

$ /mo

Billable hours per month Hours actually on paying jobs

hrs

Profit & Reserve

Customize

Profit margin 20% is typical for GC projects

Callback reserve Buffer for punchlist & warranty

Tax set-aside Informational — not in quote

Recommended Job Price

$0.00/hr effective rate

Price Breakdown

Labor costWhat you actually pay your crew	—
Overhead allocation—	—
Materials & supplies—	—
MobilizationFlat job charge	—
Permits & inspectionsPass-through fee	—
Subtotal before reserve	—
Callback reserveSet aside for warranty work	—
Your profitTake-home after all costs	—
⚠ Tax set-aside (not in quote)Set this aside — it's not income	—

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FAQ

What markup should I charge on materials?

10–20% on materials and subs is standard. Direct materials get 15–20%; sub coordination gets 10–15% to cover your management and risk.

What profit margin should I target?

15–25% net on total costs. Larger projects trend toward 15%; smaller jobs warrant 20–25%. Never confuse margin with markup.

Do I need to pull permits?

Yes for most structural, mechanical, and finish work. Permits protect you legally and are a straight pass-through on the invoice.

How do I calculate overhead?

Monthly fixed costs ÷ billable hours. Include office, insurance, vehicles, admin, and software — everything that runs whether you're on a job or not.

Should I include a warranty reserve?

Yes — 5% per project funds punchlist and warranty callbacks. Build it in so it's already covered when you need it.

Disclaimer: Estimates only — not financial or tax advice. Actual costs vary by location, scope, and market. Consult a qualified professional for your situation.