Contractor & construction
Material Cost Calculator
Works material cost, where waste and pack sizes sit between quantity and order.
Result
Materials should carry a markup even when the customer could buy them retail. You finance them, transport them, store them, handle the returns and warrant the result.
Get a Free Business AuditHow the calculation works
Quantity required times unit cost, with a waste allowance added and the result rounded up to the pack or sheet size the material is sold in. The ordered quantity is always more than the calculated one, and by how much depends on the material and the shape of the work.
What moves the number
- Waste allowance, which differs by material.
- Pack, sheet or bundle sizes.
- Cuts and the layout's complexity.
- Supplier minimums and delivery charges.
Where this one goes wrong
Waste depends on the geometry as much as the material, since a simple rectangular area wastes little while a cut-up space with angles wastes a great deal of a sheet or board product, which is why a single allowance across all jobs is wrong in both directions. Judge it from the layout. Delivery charges and supplier minimums are the other items, and on a small job they can rival the material cost itself.
Before you quote
- Set the waste allowance from the layout, not a general rule.
- Round up to the pack or sheet size actually sold.
- Include delivery charges and any supplier minimum.
Questions
About this calculator
How much waste should I allow?
It depends on the material and the geometry. A simple rectangular area wastes little; a cut-up space with angles wastes a great deal of a sheet or board product. A single allowance across all jobs is wrong in both directions.
Why is the ordered quantity more than the calculation?
Waste, cuts, and the pack or sheet size the material is sold in. You cannot buy two thirds of a sheet, so the order rounds up, and on a small job that rounding is a meaningful share of the cost.
Do delivery charges matter?
On a small job they can rival the material cost, along with any supplier minimum order. Both belong in the estimate, and consolidating deliveries across jobs where the schedule allows is a real saving.
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How to use this calculator
- Quantity needed. Enter your own figure; the page starts at 120.
- Price per unit ($). Enter your own figure; the page starts at $8.4.
- Waste allowance (%). Enter your own figure; the page starts at 10%.
- Delivery and handling ($). Enter your own figure; the page starts at $180.
- Sales tax (%). Enter your own figure; the page starts at 8.25%.
- Your markup on materials (%). Enter your own figure; the page starts at 25%.
The result updates as you type, so you can try a figure, see what it does to price to the customer, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Quantity needed | 120 |
| Price per unit | $8.4 |
| Waste allowance | 10% |
| Delivery and handling | $180 |
| Sales tax | 8.25% |
| Your markup on materials | 25% |
What comes out
| Result | Value |
|---|---|
| Price to the customer main result | $1,743.91 |
| Your total cost | $1,395.13 |
| Material profit | $348.78 |
| Quantity to order | 132 |
Order 132 units to allow for waste. They cost you $1,395.13 delivered, and at 25% markup you charge $1,743.91, $348.78 of profit.
How sensitive the answer is
Holding everything else steady and changing only price per unit, this is what happens to price to the customer. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Price per unit ($) | Price to the customer |
|---|---|
| $4.2 | $993.73 |
| $6.3 | $1,368.82 |
| $8.4 example above | $1,743.91 |
| $12.6 | $2,494.08 |
| $16.8 | $3,244.25 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Quantity needed
- A number, starting at 120.
- Price per unit ($)
- A money amount, starting at $8.4.
- Waste allowance (%)
- A percentage, between 0 and 60, starting at 10%.
- Delivery and handling ($)
- A money amount, starting at $180.
- Sales tax (%)
- A percentage, between 0 and 50, starting at 8.25%.
- Your markup on materials (%)
- A percentage, between 0 and 300, starting at 25%.
What the results tell you
| Result | What it is |
|---|---|
| Price to the customer | The headline result. A money figure. |
| Your total cost | A money figure. |
| Material profit | A money figure. |
| Quantity to order | A number. |
Overhead is where these go wrong
Pricing and margin figures are only as good as the cost you put in. If your cost covers parts and wages but not the van, the insurance, the phone and the unbilled hours, the markup is paying for those before it becomes profit, and the margin you think you are making is not the one you are making.
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