Business Tools
Project Cost Calculator
Estimate total project costs including labor, materials, overhead, and contingency. Calculate project budget with detailed cost breakdown.
Use Project Cost Calculator to get instant results without uploads or sign-ups. Everything runs securely in your browser for fast, reliable output.
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About this tool
Project cost estimation combines direct costs (labor, materials) with indirect costs (overhead, contingency). Accurate estimation prevents budget overruns and ensures project profitability.
Industry standard: overhead 10-30%, contingency 5-20% depending on project complexity. Software projects often need higher contingency (15-20%) due to changing requirements. Construction typically uses 10-15% contingency.
Usage examples
Website Development
Web project costs
Labor $15,000, Materials $2,000, Overhead 20%, Contingency 15% → Total $22,950
Home Renovation
Construction project
Labor $30,000, Materials $25,000, Overhead 15%, Contingency 10% → Total $68,750
Marketing Campaign
Service project
Labor $8,000, Materials $5,000, Overhead 25%, Contingency 10% → Total $17,888
How to use
- Enter "Labor Cost" (wages/salaries for project).
- Enter "Materials Cost" (supplies/equipment).
- Enter "Overhead %" (admin, utilities, rent).
- Enter "Contingency %" (unexpected costs buffer).
- Click "Calculate" to see total project budget.
Benefits
- Complete cost breakdown
- Labor & materials tracking
- Overhead calculation
- Contingency planning
- Total budget estimation
- Cost percentage analysis
FAQs
What is included in project labor costs?
Labor costs include: employee wages/salaries, contractor fees, freelancer payments, benefits (if applicable), payroll taxes. Calculate by: hourly rate × estimated hours, or fixed salary allocation. Example: 3 developers at $75/hr × 200 hours = $45,000. Don't forget: senior vs junior rates, overtime, specialized skills premium. Track separately from materials for accurate profitability analysis.
What are materials costs in project estimation?
Materials/direct costs: physical supplies (lumber, concrete, hardware), software licenses, stock photos, equipment rentals, shipping/delivery, third-party services (hosting, APIs). NOT labor or overhead. Example web project: $500 hosting, $200 stock assets, $1,000 software licenses = $1,700 materials. Keep receipts for tax purposes. Track actual vs estimated to improve future estimates.
How do I calculate project overhead percentage?
Overhead = indirect costs that can't be attributed to specific project: rent, utilities, insurance, office supplies, admin salaries, software subscriptions, marketing. Calculate: (Total Overhead ÷ Total Labor) × 100. Typical: 10-15% (manufacturing), 20-30% (services), 30-50% (startups). If annual overhead is $100K and labor $400K, overhead rate = 25%. Apply this rate to project labor to allocate overhead fairly.
What should contingency percentage be for projects?
Contingency covers: scope changes, unexpected issues, risk mitigation, material price increases, timeline delays. Recommended: 5-10% (well-defined projects, experienced team), 10-15% (moderate complexity, some unknowns), 15-25% (high complexity, new technology, uncertain requirements). Software/IT: 15-20%. Construction: 10-15%. Never skip contingency - Murphy's Law applies. Better to return unused contingency than need more budget mid-project.
How accurate should project cost estimates be?
Estimate accuracy depends on project phase: Rough Order of Magnitude (ROM): ±50% (early concept), Budget Estimate: ±25% (planning phase), Definitive Estimate: ±10% (detailed planning complete). Improve accuracy by: breaking down tasks (WBS), using historical data, consulting experts, adding contingency, reviewing with team. Track actual vs estimated for continuous improvement. 10-15% variance is normal and acceptable.
What is the difference between fixed-price and cost-plus pricing?
Fixed-Price: client pays set amount regardless of actual costs. Risk on contractor. Need accurate estimates + contingency. Common in construction, web development. Cost-Plus: client pays actual costs + markup%. Risk on client. Requires detailed tracking. Used when scope uncertain. Example: estimate $50K. Fixed-price: quote $60K (includes contingency/profit). Cost-plus: quote actual costs + 20% markup. Fixed-price = predictable for client, higher risk for contractor.
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