Build accurate estimates for service businesses
For educational purposes. Not financial advice.
Tools that pair well with this calculator — selected by our team.
| Tool | Best For | Network |
|---|---|---|
| FreshBooks | $55/sale + $5/trial | Awin |
| Jobber | Contractor scheduling, quotes, job costing | Direct |
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Job costing tracks the actual costs (labor, materials, overhead) of a specific project or job. This lets you see if a job was profitable and helps price future similar jobs accurately.
Keep a separate record for each job: labor hours × rate + materials + subcontractor costs + overhead allocation. Use job costing software or a spreadsheet. Compare actual to estimated costs regularly.
Overhead recovery rate = Total Overhead Costs / Total Labor Hours. This ensures you charge enough to cover indirect costs (rent, utilities, admin) not directly billable to clients.