Enter your labor hours, material cost, overhead, and target margin to find the right price for any electrical job.
Most electricians charge $50-$130 per hour for labor, with markup on materials of 20-50%. A fair markup on electrical materials is 25-35% to cover procurement time, warranty risk, and carrying costs. Use this calculator to find your total job price based on labor hours, material cost, overhead, and target margin.
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Try LeadLock Free First month free. No credit card required.Most electricians mark up materials 20-50% above their cost. A 25-35% markup is standard for residential work. The markup covers procurement time, storage, warranty handling, and the carrying cost of maintaining inventory. Customers who supply their own materials save the markup but often create warranty and liability problems. Charge a handling fee if you allow it.
Start with your fully loaded cost per hour: technician wages plus payroll taxes (18-22% above base), workers comp insurance (3-8% for electricians), and vehicle expenses. Divide your monthly overhead by billable hours per month and add that per-hour overhead. Then add your profit margin. Most residential electricians should charge $75-$130/hr at retail.
Licensing and permit fees, liability insurance, vehicle and equipment costs, dispatcher or office admin time, tools and test equipment depreciation, marketing, and non-billable drive time. Many electricians price labor and materials but forget to allocate overhead, which means profitable-looking jobs are actually breaking even or losing money.
Yes, always. Build permit fees directly into your quote and do not treat them as pass-through items added later. Customers who see a permit fee as a surprise often dispute it. An all-in price with permits included signals professionalism and avoids disputes at billing time.
Quoted (fixed-price) jobs work best when scope is well-defined: panel upgrades, outlet additions, light fixture installs. Add a contingency of 10-15% to your cost estimate for unknowns. Time-and-materials billing is better for remodel work where walls are open and scope changes frequently. Mixed billing, fixed for defined scopes and T&M for exploratory work, is also common.
Healthy electrical contractors target 15-25% gross margin and 8-12% net after overhead. Specialty work (industrial, commercial high-voltage) can achieve higher margins due to licensing barriers and complexity. Residential service work is more competitive. Track gross margin per job to identify which job types are most profitable for your specific business.
This calculator is for informational purposes only. Results are estimates based on the inputs you provide. Consult a qualified financial professional before making business decisions.