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) = (\$)