# How to Calculate What to Charge as a Carpenter

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When you work as a carpenter, there are several factors you need to calculate to determine how much to charge. You need to cover all costs for materials, as well as overhead costs and labor. Finally, you need to add the amount you want as a profit for yourself. Combining all of these costs will allow you to keep your company profitable for a job.

Estimate the amount of materials you will need and how much you can acquire them for. As a carpenter, your main material is, of course, lumber. For example, assume you have a very small job that requires 30 yards of lumber at \$0.50 a yard, so your material costs are \$15. Remember the price you can get for lumber will vary. If you deal with one supplier a lot, it may offer you discounted rates.

Determine any overhead costs. These costs include gas to get to a job, electricity you need to pay for yourself, depreciation on equipment and any other cost that does not fall under labor or materials. For example, assume you estimate gas costs at \$5 and you depreciate your equipment \$3 for the job.

Estimate the number of man hours you need and multiply the amount by your average hourly pay rate. For example, assume the job will take three hours and you pay employees on average \$15 a hour, so \$15 an hour times three hours equals \$45 in labor costs.

Add up your costs. For example, \$15 (materials) plus \$5 plus \$3 (overhead) plus \$45 (labor) equals \$68 in total costs for the job.

Add one to the decimal form of your markup rate and then multiply it by your total costs to find what you should charge. By adding one, you are taking your original cost and adding the markup to it. In the example, 0.07 plus 1 equals 1.07, so then 1.07 times \$68 equals a charge of \$72.76.

## Tips & Warnings

• Remember as the size of your job increases, the more you will charge for materials, labor and overhead.

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