How it works
Burdened rate = wage × (1 + burden%). Material billed = material cost × (1 + material markup%). Total cost = burdened labor + contingency + material billed + overhead. Price = total cost ÷ (1 − target margin%). Margin = profit ÷ price; Markup = profit ÷ cost.
The compact readout shows the five numbers you act on — recommended price, labor, material (cost → billed), break-even, and net profit (with the actual margin you land) — and this section unpacks the intermediate figures that feed them. Start with the **burdened hourly rate**: your wage plus payroll taxes, workers comp and benefits (the burden %). At $55/hr and a 45% burden, an hour of labor actually costs $79.75, so 6 hours of labor is $478.50, not the $330 the raw wage suggests. Add a **contingency** buffer for hidden conditions — 10% of labor, about $48 on the default job. Next, **material markup** is your reward for sourcing parts: a 30% markup turns a $450 purchase into $585 billed, the $135 difference being your margin on materials. That billed material — not the bare purchase — is what the customer pays, so it is what the rest of the estimate is built on. Add **overhead** (truck, tools, insurance) as a percent of that subtotal — roughly $167 at 15%. The result is your **total cost**, which is also your **break-even** (about $1,278 on the default job): quote at it and your net profit is exactly zero. To price the job, divide that total cost by (1 − target margin) — the margin-divisor method — which on the default job lands $1,452 and delivers your full 12% net margin, no more, no less. This is also why **markup and margin are not the same**. A 30% markup means profit is 30% of *cost*; a 30% margin means profit is 30% of *price*. Apply a 30% markup and you only keep a 23.1% margin (30 ÷ 130); to actually keep a 30% margin you must apply a 42.9% markup. Size and spec the materials you are estimating with the conduit fill calculator so the parts list you price is the parts list you install.
Code references
- Workmanship & scope framing (estimate math is not NEC-governed) NEC 2023, Article 90 — Introduction, 90.1 Purpose
- Labor burden — payroll tax, workers comp and benefit loading Standard construction cost-accounting practice (e.g. NECA labor-unit method)
- Markup-vs-margin (margin-divisor) pricing Standard contractor accounting: margin = markup ÷ (1 + markup)
FAQ
What is the difference between markup and profit margin?
Markup is profit as a percentage of your cost; margin is profit as a percentage of your selling price. They are not the same, and confusing them is the single most common way electricians underprice. If a job costs you $1,000 and you add a 30% markup, you charge $1,300 and keep $300 — but $300 of $1,300 is only a 23.1% margin, not 30%. The shortcut is margin = markup ÷ (1 + markup). To actually keep a 30% margin you must apply a 42.9% markup. This calculator prices off the margin so you get the profit you intend.
What is labor burden and why does it matter?
Labor burden is everything you pay for an hour of work beyond the wage itself: your share of payroll taxes (Social Security, Medicare, unemployment), workers’ compensation insurance, liability, and any benefits or paid time off. For a single-truck electrician it typically adds 38–55% to the wage. At $55/hr and a 45% burden, an hour of labor really costs $79.75 — bill at the raw $55 and you are paying to work. Most calculators assume you already entered a burdened rate; this one builds it for you so you do not forget the layer.
How do I know if my quote is too low?
Compare it to two numbers this tool gives you. The break-even price is your true cost of doing the job — quote below it and you lose money on every dollar. The recommended price adds your target net margin on top of break-even. If your gut number is below break-even, it is far too low; if it is between break-even and the recommended price, you are working at a thinner margin than you planned. The verdict line tells you in plain language which band you are in and what to do.
Why does overhead get applied on top of labor and material?
Overhead is the cost of being in business that no single job pays for directly — your truck, tools, insurance, phone, software and unbillable time. It is spread across every job as a percent of that job’s direct cost. A common single-truck range is 10–25%. If you do not load overhead into each estimate, those costs come straight out of your profit at the end of the year.
Does the NEC tell me what to charge?
No. The National Electrical Code governs how the work must be installed for safety, not how it is priced — estimating is standard construction cost-accounting. Use this calculator for the business math, and verify the installation itself against the current NEC edition and your local amendments with a licensed electrician.
Is this a substitute for job-costing software?
It handles a single job cleanly — one quote, on one screen, with the markup, burden and break-even spelled out. For tracking many jobs, invoicing, scheduling and automatic job costing across your whole business, dedicated field-service platforms (Jobber, Housecall Pro, ServiceTitan) automate this math at scale. This calculator is the fast, free way to price one job and to sanity-check what those tools produce.
This calculator is provided for estimation purposes only and is not financial, tax or accounting advice. Pricing inputs (burden, overhead, margin) vary by business and region — confirm your own figures with your accountant. The estimate math is not governed by the NEC; always verify the electrical installation itself against the current NEC edition and local amendments with a licensed electrician.