A job estimate tells a customer what you expect the work to cost before it starts. It protects you from underquoting and the customer from surprises. You can build one with our free job estimate template.
Updated November 2026
Step 1: Visit the job and list the work
Measure, take photos and write down each task. Be specific. “Install new vanity and sink” is clearer than “plumbing”.
Step 2: Price each cost
Break costs into labor, materials, equipment and other. Cost = quantity x unit cost. In the example, 6 hours of labor at $55 is $330 and 40 sq ft of tile at $4.50 is $180. All eight lines add up to $1,810.
Step 3: Add markup
Markup covers overhead and profit. A 15 percent markup on $1,810 adds $271.50 for a subtotal of $2,081.50. Markup is a percentage of cost, not of the selling price. If you want a given share of the selling price, that is a margin; see our margin calculator.
Step 4: Add tax if it applies
Sales tax rules depend on where you work and what you sell. The example taxes materials only, after markup: $870 of materials x 1.15 x 7 percent = $70.04. The total is $2,081.50 + $70.04 = $2,151.54. Confirm your own rules with your tax authority.
Step 5: Ask for a deposit
A 30 percent deposit on $2,151.54 is $645.46. State when the balance is due.
What to put on the estimate
- Customer name and job address.
- Date and how long the price is valid.
- Itemised costs and the total.
- What is included and what is not.
- Payment terms.
These are illustrations to help you plan, not financial, legal or tax advice.
Frequently asked questions
What is the difference between an estimate and a quote?
An estimate is an approximate price. A quote is usually a fixed price. Wording varies by trade, so state which one you are giving.
How much markup should I add?
It depends on your overhead and market. Work it out from your own costs.
Do I charge tax on labor?
It depends on where you work. Check with your tax office.
Is there a free template?
Yes. The job estimate template on this site has all the formulas.