Contractor Profit Calculator
LivePrice the complete job with costs, overhead, contingency, tax, and target margin.
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Change order calculator for contractors
Price added scope without forgetting labor, materials, overhead, contingency, profit margin, tax, or the new total project price.
Scope change worksheet
Price the added work before approving it
How it works
- Enter the original contract value and every added direct cost.
- Record schedule impact and include any actual time-related expenses.
- Apply overhead, contingency, target margin, and tax.
Change order formula
- Added labor cost = added hours x hourly labor cost.
- Internal cost = direct cost + overhead + contingency.
- Price before tax = internal cost / (1 - target margin).
Common change-order mistakes
- Pricing only materials while treating added labor as free.
- Using markup as though it were profit margin.
- Ignoring schedule extension, remobilization, and overhead.
Frequently asked questions
How should a contractor price a change order?
Start with added materials, labor, subcontractors, and equipment. Add overhead and contingency, then divide internal cost by one minus the target profit margin before adding applicable tax.
Should a change order include overhead and profit?
Usually yes. Added scope still consumes estimating, supervision, administration, insurance, and business capacity. Profit is separate from overhead.
How should schedule delays be priced?
Record the impact days and add actual extended supervision, equipment rental, remobilization, or other time-related costs. Days alone do not have a universal price.
Is markup the same as margin on a change order?
No. Margin is profit divided by selling price, while markup is profit divided by cost. A 20% target margin requires dividing cost by 0.80.
Recheck the complete project economics
A change order protects the added scope. Use the main profit calculator to review the complete job price and target margin.
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