Project Quote Calculator
Build a fixed-price project quote from estimated hours, your rate, materials, a contingency buffer, and a profit markup — with a full price breakdown.
How to use this tool
- Enter your estimated hours and the hourly rate you apply to them.
- Add materials and pass-through costs the project will incur.
- Set a contingency buffer for scope creep and estimate error.
- Set your profit markup, then read the quoted price and breakdown.
Turn an hours estimate into a fixed-price quote. Add materials, a contingency buffer for the unexpected, and a profit markup — the calculator shows the quoted price and every layer that built it.
Formula
Labour = Hours × Rate
Subtotal = Labour + Materials
Contingency = Subtotal × Contingency%
Base = Subtotal + Contingency
Quoted price = Base × (1 + Markup%)
How it works
A fixed-price quote bundles estimated labour, direct materials, a buffer for the things that always go slightly wrong, and a profit margin into one number a client can accept. This calculator layers them in order: labour (hours × rate) plus materials gives a subtotal; a contingency percentage pads that subtotal for scope creep and estimate error; then a markup is applied on the padded base to set your profit on the engagement.
Two design choices matter. Contingency is applied before markup, so your margin is calculated on the risk-adjusted cost rather than the bare estimate — protecting profit when projects run long. Materials are treated as pass-through cost inside the subtotal, so they are buffered and marked up like labour; if you prefer to bill materials at cost, set the materials field and reduce markup accordingly. Fixed bids transfer estimate risk from the client to you, which is exactly why a contingency buffer is not optional for anything but the smallest jobs.
Prepared by the AbraCalc Freelance Desk. Use a defensible hours estimate and a contingency that reflects how well you know the work; unfamiliar projects warrant a larger buffer.
Worked example
40 hours at $80, $500 materials, 10% contingency, 20% markup
- Labour = 40 × 80 = 3,200.
- Subtotal = 3,200 + 500 = 3,700.
- Contingency = 3,700 × 10% = 370.
- Base = 3,700 + 370 = 4,070.
- Markup = 4,070 × 20% = 814; quoted price = 4,070 + 814 = 4,884.
Quoted price = $4,884.00
Quoted price by contingency and markup (40h × $80 + $500 = $3,700 subtotal)
| Contingency | Markup | Quoted price |
|---|---|---|
| 0% | 0% | $3,700.00 |
| 10% | 0% | $4,070.00 |
| 10% | 20% | $4,884.00 |
| 15% | 20% | $5,106.00 |
| 20% | 25% | $5,550.00 |
| 25% | 30% | $6,012.50 |
Key terms
- Fixed-bid project
- A project quoted as one price for an agreed scope, rather than billed by the hour.
- Contingency
- A percentage buffer added to the estimate to absorb scope creep and underestimation.
- Markup
- A percentage added to cost to produce the selling price and your profit.
- Pass-through cost
- A direct cost (materials, subcontractors) that the project incurs and the quote must recover.
Frequently asked questions
- Why apply contingency before markup?
- So your margin is calculated on the risk-adjusted cost, not the raw estimate. If a project runs over, the contingency absorbs the overrun first and your profit is protected rather than eaten.
- How big should my contingency be?
- It depends on how well you know the work. For familiar, well-scoped projects 10% may be enough; for novel or vaguely-specified work, 20–30% is more realistic. The less certain the estimate, the larger the buffer.
- What is the difference between markup and margin?
- Markup is added to cost (price = cost × (1 + markup)). Margin is profit as a share of the final price. A 20% markup on cost produces a margin below 20% of price; use a margin-pricing calculator if you want to target a specific margin.