Painting
Painting Pricing Calculator
Prices painting from cost upward, where labour is nearly all of the direct cost.
Result
Overhead and margin are taken as shares of the selling price, which is why the cost is divided rather than multiplied. Adding 15% to cost does not produce a 15% margin. Gross profit is what is left after the cost of doing the job. Overhead comes out of that: the building, the office wages, the vans, insurance, software and advertising. A healthy gross margin still loses money if overhead is larger.
Get a Free Business AuditHow the calculation works
Direct cost divided by one minus overhead and margin together, so the price carries both. The structure of painting cost is unusual: labour is the overwhelming majority of direct cost and material is a modest share, which means pricing accuracy depends almost entirely on estimating hours correctly. Overhead is comparatively light in this trade since the equipment is inexpensive, which is why the barrier to entry is low and the competition is heavy.
What moves the number
- Labour hours, which dominate direct cost.
- Production rates used in the estimate.
- Overhead rate, which is lower than equipment-heavy trades.
- Competitive pressure, which is intense because entry is easy.
Where this one goes wrong
Low barriers to entry mean there is always someone cheaper, and competing on price in painting is a race that the least experienced operator wins temporarily. The defensible position is accurate estimating and described scope: a business that knows its production rates can price tightly without guessing, and one that describes its preparation can justify being more expensive than an operator who does less. Markup and margin remain distinct, and dividing by one minus the margin is what makes the price carry it.
Before you quote
- Base pricing on recorded production rates, not judgement.
- Describe preparation so the price is justifiable rather than just higher.
- Check the resulting margin against the markup figure.
Questions
About this calculator
Why is painting so competitive on price?
Because the barrier to entry is low: the equipment is inexpensive and the skills are acquired on the job, so there is always someone cheaper. Competing on price is a race the least experienced operator wins temporarily, which is why accurate estimating and described scope matter more.
What share of painting cost is labour?
The overwhelming majority, with material a modest share on most jobs. That means pricing accuracy depends almost entirely on estimating hours correctly, and a business without recorded production rates is guessing at the part that matters most.
How do I justify being more expensive?
By describing what is included. A customer cannot see the difference between a wash and spot prime and a full scrape and prime, so a thorough quote reads as overpriced unless it says what it covers. Written scope is how a properly priced job competes with a cheap one.
The formula
price = direct cost / (1 - overhead% - margin%)
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How to use this calculator
- Labour cost ($). Burdened: wages plus tax, insurance and the vehicle, not the hourly wage.
- Materials cost ($). Enter your own figure; the page starts at $520.
- Other direct costs ($). Permits, disposal, equipment hire, subcontractors.
- Overhead rate (%). Overhead as a share of revenue. Work it out from last year's accounts.
- Target net margin (%). Enter your own figure; the page starts at 15%.
The result updates as you type, so you can try a figure, see what it does to price to quote, 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 |
|---|---|
| Labour cost | $1,400 |
| Materials cost | $520 |
| Other direct costs | $0 |
| Overhead rate | 22% |
| Target net margin | 15% |
What comes out
| Result | Value |
|---|---|
| Price to quote main result | $3,048 |
| Direct cost | $1,920 |
| Overhead recovered | $670.48 |
| Net profit | $457.14 |
| Gross margin | 37.0% |
| Markup on direct cost | 58.7% |
Quote $3,048 to cover $1,920 of direct cost, recover $670.48 of overhead and leave $457.14 of net profit. That is a 58.7% markup on cost.
How sensitive the answer is
Holding everything else steady and changing only labour cost, this is what happens to price to quote. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Labour cost ($) | Price to quote |
|---|---|
| $700 | $1,937 |
| $1,050 | $2,492 |
| $1,400 example above | $3,048 |
| $2,100 | $4,159 |
| $2,800 | $5,270 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Labour cost ($)
- Burdened: wages plus tax, insurance and the vehicle, not the hourly wage.
- Materials cost ($)
- A money amount, starting at $520.
- Other direct costs ($)
- Permits, disposal, equipment hire, subcontractors.
- Overhead rate (%)
- Overhead as a share of revenue. Work it out from last year's accounts.
- Target net margin (%)
- A percentage, between 0 and 80, starting at 15%.
What the results tell you
| Result | What it is |
|---|---|
| Price to quote | The headline result. A money figure. |
| Direct cost | A money figure. |
| Overhead recovered | A money figure. |
| Net profit | A money figure. |
| Gross margin | A percentage. |
| Markup on direct cost | A percentage. |
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.