Enter the job materials cost ($), the labor costs ($), and the target margin (%) into the Job Cost Calculator. The calculator will evaluate and display the Job Cost. 

Job Cost Formula

The following formula is used to calculate the Job Cost. 

JC = (MC + LC) / (1-M/100)
  • Where JC is the Job Cost ($)
  • MC is the job materials cost ($) 
  • LC is the labor costs ($) 
  • M is the target margin (%) 

To calculate job price, add the materials and labor cost together, then divide by the result of 1 minus the target margin.

How to Calculate Job Cost?

The following example problems outline how to calculate Job Cost.

Example Problem #1

  1. First, determine the job materials cost ($).
    1. The job materials cost ($) is given as 500.
  2. Next, determine the labor costs ($).
    1. The labor costs ($) is calculated as: 300.
  3. Next, determine the target margin (%).
    1. The target margin (%) is found to be: 20.
  4. Finally, calculate the Job Cost using the formula above: 

JC = (MC + LC) / (1-M/100)

Inserting the values from above yields: 

JC = (500 + 300) / (1-20/100) = 1,000.00 ($)

Example Problem #2

The variables needed for this problem are provided below:

job materials cost ($) = 600

labor costs ($) = 700

target margin (%) = 50

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. 

JC = (MC + LC) / (1-M/100) = ($)