How to use these calculators
A service business cannot price client work solely by multiplying hours by employee salary. Low billable utilization means fewer hours recover overhead. First measure actual capacity utilization, then calculate a project quote using loaded labor expense, subcontractors, overhead and a target selling-price margin.
A worked scenario
Utilization: 68.75%; minimum cent-rounded project quote: $7,285.72.
Use loaded hourly labor cost, not the client billing rate, and document what is inside allocated overhead.
How to plan this decision
- Measure usable hours
Track billed and available hours over the same time period.
- Define loaded project cost
Include employer costs, contractors, direct tools and allocated overhead without duplication.
- Quote a target margin
Distinguish margin from markup, then add a documented risk reserve if needed.
Read the detailed worked guide →
Start with the formula
Build a complete project cost, add contingency, and distinguish quoted margin from final realized profit.
Read How to Calculate Contract Profit and Protect Project Margin →