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Contractor Invoice Calculator

Price a contractor invoice: labor, marked-up materials, expenses, tax and retainage withheld.

Result

Labor total

$2,400.00

Materials (with markup)

$575.00

Total tax

$0.00

Total

$2,975.00

Retainage withheld

$0.00

Amount due now

$2,975.00

Embed this calculator on your site

Copy this code and paste it into your page's HTML. The calculator is free to use and resizes itself to fit.

How it's calculated

Labor = hours × rate. Materials are billed at cost plus your markup. Tax applies to labor, materials and expenses. If the client withholds retainage, that percentage of the total is held back and the rest is due now.

This contractor invoice calculator prices a job from labor, materials, expenses and tax. It marks up your material costs and shows how much retainage the client withholds. You get labor, materials, tax, the total, the retainage and the amount due now.

The formula

labor     = hours x hourly rate
materials = materials cost x (1 + markup)
subtotal  = labor + materials + expenses
tax       = subtotal x tax rate
total     = subtotal + tax
retainage = total x retainage %
due now   = total - retainage

Worked example

Inputs: 40 hours at $60, materials $500 with 15% markup, expenses $100, tax 8%, retainage 10%.

  • Labor: $2,400.00
  • Materials with markup: $575.00
  • Subtotal: $3,075.00
  • Tax: $246.00
  • Total: $3,321.00
  • Retainage withheld: $332.10
  • Amount due now: $2,988.90

How to read the result

The total is the full value of the job. The amount due now is lower when the client holds back retainage. The held amount is still owed to you.

  • Track retainage as a receivable. Do not write it off.
  • Retainage is taken from the total, so it includes tax in this calculator.
  • Keep supplier receipts. They support the cost behind your materials markup.
  • Markup is a percent of cost. It is not the same as margin on the sale price.

Tax and retainage rules vary by country and by contract type. Ask an accountant or a legal adviser when large sums are involved.

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Frequently asked questions

How do I price a contractor invoice?
Multiply labor hours by your rate. Add materials at cost plus your markup, then add other expenses. Apply tax if it is due. If the client withholds retainage, subtract it to find what is due now.
What is retainage on a construction invoice?
Retainage is a share of the payment that the client holds back until the work is finished or accepted. The contract sets the percentage. Read your contract for the exact terms.
How much markup should I put on materials?
There is no standard figure. Markup covers sourcing, handling, waste and the risk of price changes. Pick a percentage that covers those costs and agree it in the contract. The default here is 15 percent.
Is tax charged on labor and materials?
This calculator taxes labor, materials and expenses together. Many places tax only some of these items. Confirm the rules for your region with a tax authority or an accountant.
When do I get the retainage back?
You usually bill it once the work is complete or accepted, as set in the contract. Add a separate invoice line for the released retainage so both sides can track it.