Understanding your result
The headline is the bid price, and the sub-line gives the profit and the break-even cost. The three figures show the break-even, the profit and the markup that gives the same profit.
The table builds the price line by line: labour, materials with markup, equipment and travel, the direct costs, overhead on them, the break-even cost, the profit at your margin, the bid price, the markup equivalent, the price per square foot and the labour share of the price. The labour share is a quick check: residential repaints usually run 40 to 60% labour in the price.
The bid sits at the end of the pro calculators. The production rate calculator gives the labour hours; the markup versus margin calculator works the conversion both ways for any number; the painter cost estimator shows what homeowners see as the typical range; and the cost per square foot calculator places your bid against the published figures.
How we calculate this
The price is set by dividing the cost by one minus the margin, which is what makes the margin a share of the price. Overhead is applied to the direct costs, the most common method for a small trade business; some estimators apply it to labour only, which gives a lower figure on material-heavy jobs. The bid guide walks through both methods and shows how to work out your own overhead rate from a year’s books.
The burdened labour cost is a field because it varies so much by state and by company. The Bureau of Labor Statistics’ Occupational Employment and Wage Statistics put the US median wage for painters, construction and maintenance at about $23 an hour in May 2023; payroll taxes, workers’ compensation and insurance come on top, and how much depends on the state, the insurer and the company’s claims history. The painters’ charges guide sets the result against what customers pay.
The assumptions behind the numbers
| Assumption | Default | Where it comes from |
|---|---|---|
| Labour cost | $32 per hour | The BLS May 2023 median painter wage (about $23) plus a site allowance for payroll taxes and insurance; replace it with your own burdened rate |
| Materials markup | 15% | Common trade practice; 10–25% |
| Overhead | 15% of direct costs | A common small-business figure; work out your own |
| Profit margin | 20% | Mid-range of the 15–30% commonly cited for residential repaints |
| Equipment, travel, disposal | $75 | Placeholder |
Assumptions last reviewed October 8, 2026.
The calculator is arithmetic, not business advice. It does not model sales tax on materials, which depends on your state, deposits and payment terms, warranty reserves, or the cost of winning the job. A bid that loses money is a decision; the calculator only shows it.
Two worked examples
A repaint at a 20% margin
40 labour hours at $32, $450 of materials at 15%, $75 of extras, 15% overhead, 20% margin, 2,800 sq ft painted.
- Labour $1,280; materials $517.50; extras $75; direct $1,872.50
- Overhead: $280.88; cost $2,153.38
- Price: $2,153.38 ÷ 0.8 = $2,691.72; profit $538.34
- Markup equivalent: 25%; $0.96 per sq ft; labour 48% of the price
The same job at a 30% margin and 20% overhead
- Cost: $1,872.50 × 1.20 = $2,247.00
- Price: $2,247 ÷ 0.7 = $3,210.00; profit $963
- Markup equivalent: 42.9%; $1.15 per sq ft
Ten points of margin and five of overhead add $518 to the price. Whether the market pays it is the cost per square foot check.
Where to find your inputs
Hours. From the production rate calculator, plus prep, setup and cleanup.
Labour cost. Payroll records: gross wages plus employer taxes and insurance, divided by hours worked.
Materials. The paint cost and supplies calculators, at your contractor prices.
Overhead. Last year’s overhead divided by last year’s direct costs.
Margin. Your target; check the result against the cost per square foot ranges.
Common mistakes
- Using markup when you mean margin. A 20% markup is a 16.7% margin.
- Wage instead of burdened cost. Payroll taxes and insurance are real costs.
- No overhead line. The truck and the insurance are paid by the jobs.
- Leaving out prep hours. Production rates are painting only.
- Pricing to the cheapest competitor. Price to your costs, then decide.
- Forgetting disposal and travel. Small lines that add up across a year.
Questions people ask
- How do painters calculate a bid?
- Labour hours from production rates times the full cost of an hour, plus materials with a markup, plus equipment and travel, plus overhead as a share of those direct costs, and then profit. With 40 hours at $32, $450 of materials at 15% markup, $75 of extras, 15% overhead and a 20% margin, the bid is $2,691.72.
- What is the difference between markup and margin?
- Markup is profit as a share of cost; margin is profit as a share of price. A 20% margin on a $2,153 cost gives a $2,692 price and a $538 profit, which is a 25% markup. Pricing at cost plus 20% would give only $431 of profit.
- What should the labour cost per hour include?
- The wage plus payroll taxes, workers' compensation and liability insurance, which add a significant share on top of the wage. Painters' median wage in the US was about $23 an hour in May 2023 according to the Bureau of Labor Statistics; the $32 default is that wage with an allowance for those costs, and your payroll provider can give your own figure.
- What overhead percentage should a painting business use?
- Its own, which is annual overhead (vehicles, office, insurance, marketing, the owner's non-billable time) divided by annual direct costs. Small painting businesses commonly land between 10 and 25%. The default here is 15%.
- What profit margin should I bid?
- Enough to survive a job that runs over and to fund the business. Margins of 15 to 30% on residential repaints are commonly cited by painting business coaches; below 10% leaves no room for error.
- Why show the price per square foot?
- Because customers compare quotes that way. Seeing your bid as $0.96 per sq ft of painted area tells you where it sits against the published ranges before the customer does.