Contractor Invoice Calculator

Total labor, marked-up materials and tax for a job.

Labor$1,560.00

Materials (with markup)$1,380.00

Tax$0.00

Invoice total

$2,940.00

Contractors usually bill labor and materials separately and add a markup on materials to cover purchasing, handling and risk. This calculator combines the two and applies tax according to your local rules.

In some places tax applies only to materials, in others to the entire job — choose the option that matches your jurisdiction.

Formula

Labor = Hours × Rate
Materials billed = Material cost × (1 + Markup %)
Tax = Taxable amount × Tax rate
Total = Labor + Materials + Tax

Example

24 hours at $65 = $1,560 labor. $1,200 of materials at 15% markup = $1,380. Total before tax: $2,940.

Frequently asked questions

What is a typical materials markup?

Many contractors use 10–25%, but it varies by trade, region and project size.

Is labor taxable for contractors?

It depends on the state or province and the type of work. Repair labor is taxable in some US states and exempt in others.

Can I invoice deposits and progress payments?

Yes. Record each payment in the invoice generator's 'Amount paid' field to show the remaining balance.