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Contractor Ledger

Calculation Methods & Assumptions

Each calculator uses the values you enter and the formulas below. Results are estimates; the site does not check your actual costs, rates, or contract requirements.

1. Job Price and Gross Margin

Gross margin is the share of the selling price left after the included job costs. To price for a target margin, the calculators use:

Selling Price = Total Estimated Cost ÷ (1 − Target Margin % ÷ 100)
Gross Profit = Selling Price − Total Estimated Cost
Actual Gross Margin (%) = (Gross Profit ÷ Selling Price) × 100

Margin versus markup: A 25% markup on a $1,000 cost produces a $1,250 price and a $250 profit, which is a 20% margin. A 25% margin instead divides the cost by 0.75. The job pricing and project estimate calculators use this margin formula.

2. Loaded Labor Cost

Loaded labor cost combines the wages and hours you enter with overtime, a burden percentage, and additional expenses:

Regular Wages = Crew Count × Regular Hours × Hourly Wage
Overtime Wages = Crew Count × Overtime Hours × Hourly Wage × OT Multiplier
Gross Wages = Regular Wages + Overtime Wages
Employer Burden = Gross Wages × Burden Percentage
Total Labor Cost = Gross Wages + Employer Burden + Additional Expenses
Loaded Hourly Rate = Total Labor Cost ÷ Total Crew Hours

The calculator applies the burden percentage and overtime multiplier you enter. Check those assumptions against your payroll records; this tool does not determine payroll or tax requirements.

3. Monthly Break-Even Rate

The hourly rate allocates monthly fixed costs across the billable hours you expect, then adds the entered variable cost per hour:

Fixed Overhead Recovery / Hr = Monthly Fixed Costs ÷ Monthly Billable Hours
Break-Even Rate = Fixed Overhead Recovery / Hr + Variable Cost / Hr
Required Monthly Revenue = Fixed Costs + (Variable Cost / Hr × Billable Hours)

Only count hours you expect to bill. The result covers the costs you entered; it does not include profit or other costs unless you add them.

4. Material Waste and Markup

The material calculator adds your waste allowance to the quantity, calculates adjusted cost, then adds markup:

Effective Quantity = Net Specified Quantity × (1 + Waste Allowance % ÷ 100)
Adjusted Procurement Cost = Effective Quantity × Unit Cost
Markup Amount = Adjusted Procurement Cost × Markup % ÷ 100
Billed Material Price = Adjusted Procurement Cost + Markup Amount

Quantity can include decimals, such as a partial linear foot or cubic yard.

Currency values are rounded to cents. Project estimate line items are rounded before they are added, and material quantities keep up to four decimal places.