The calculation chain
Pricing decisions become more useful when each number has a clear job. We begin with costs attributable to the work, add the indirect cost of keeping the business operating, and only then evaluate the selling price and resulting profit.
- Build the cost basis. Record labor, materials, subcontractors, equipment, and other costs that belong to the job.
- Calculate labor burden. Add employer-paid costs and account for paid time that cannot be billed to a customer.
- Recover overhead. Spread indirect business costs across a user-defined capacity, job count, or revenue target.
- Set the selling-price target. Apply markup or margin using the correct denominator.
- Review the outcome. Compare the estimate with actual revenue, hours, and costs, then update the assumptions that missed.
What every result carries
A calculator result is more than a formatted dollar amount. It includes a formula version, the time calculated, the output, step-by-step substitutions, assumptions, warnings, transparent diagnostic codes, and relevant next actions. Open the formula trace beside a result to see the symbolic formula, substituted values, intermediate calculation, final rounding, units, and excluded costs.
Read the calculation rules for the five core tools, the rounding policy for monetary boundaries, or the terminology guide for the definitions used throughout the product.
Inputs, examples, and assumptions
The calculators use values supplied by the user. We do not silently supply payroll-tax rates, workers' compensation rates, local market prices, tax rules, or regional pricing averages. A sample can populate a tool only after the user selects Load example, and sample rates are hypothetical unless a cited source says otherwise.
Results are planning estimates. They are not accounting, tax, or legal advice and are not a guaranteed selling price. Contract obligations and local market conditions are not modeled unless the user enters them.
Versioning and review
Every calculation belongs to a formula registry entry with a semantic version, effective date, defined inputs and outputs, units, rounding policy, known exclusions, and human-reviewed test fixtures. Material changes are recorded in the formula changelog. A saved scenario retains the formula version used when it was created so a later result can be compared honestly.
Corrections are part of the method
Formula quality requires a visible correction path. If a formula, explanation, link, or interaction appears wrong, send a correction report. Material formula corrections are documented rather than silently replaced.