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**

- First, determine the job materials cost ($).
- The job materials cost ($) is given as 500.

- Next, determine the labor costs ($).
- The labor costs ($) is calculated as: 300.

- Next, determine the target margin (%).
- The target margin (%) is found to be: 20.

- 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) =** **($)