Budget from tasks, hours & rates. The Project Cost Estimator takes estimated hours, cost per hour, direct expenses, contingency, target margin and returns price to quote plus estimated cost, cost with contingency, expected profit at the quoted price. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Operational metrics turn time and capacity into money. Small improvements in utilisation, cycle time or defect rate compound across every unit produced, so measure them regularly. Use the worked example below to check the maths against your own figures.
How the Project Cost Estimator works
Estimate the cost, add a contingency for the unknowns, then gross up to the margin the business needs. Quoting from cost plus margin without contingency is how projects lose money.
Worked example
With the example values (estimated hours of 300 hours, cost per hour of $75, direct expenses of $2,000, contingency of 15%, target margin of 20%), the price to quote is $35,218.75; estimated cost $24,500.00, cost with contingency $28,175.00, expected profit at the quoted price $7,043.75. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Related Calculators
Frequently Asked Questions
How is price to quote calculated?
price = (hours × rate + expenses) × (1 + contingency) ÷ (1 − margin).
Which figures do I need?
Estimated hours, cost per hour, direct expenses, contingency, target margin. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
How do I use this in practice?
Measure the metric for a normal week, set a target, change one thing, and measure again. Operational gains come from many small, verified improvements.
