Combine material, labor, waste, overhead, contingency and profit into a practical fabrication job quote.
Add steel, plate, tube, consumables, hardware or other purchased materials.
| Material | Quantity | Unit | Unit Cost | Total |
|---|
Add cutting, drilling, fitting, welding, grinding, painting, inspection or other fabrication operations.
| Operation | Hours | Labor Rate / Hour | Total |
|---|
Profit is applied after the estimated production cost and contingency have been calculated.
Material should be entered at the expected purchasing cost rather than the theoretical finished-part value. This allows the quote to account for stock purchases, consumables and other materials required to complete the job.
The material waste allowance is applied separately to the material subtotal. If a detailed material takeoff already contains a waste allowance, avoid applying the same waste twice.
Labor can include all direct shop operations required to manufacture the job.
Use the actual loaded labor rate when possible. A shop's true labor cost can include wages, benefits and other employment costs.
Overhead represents costs that support production but are not directly assigned to one material line or fabrication operation.
Examples include shop rent, utilities, equipment depreciation, administration, insurance, maintenance and general operating expenses.
The percentage in this calculator is an estimating method. Businesses with established cost-accounting systems may prefer an hourly overhead rate instead.
Profit percentage and markup are not the same calculation.
This calculator uses a profit percentage applied to the estimated cost before tax. If your business quotes using a target gross margin instead of markup, the calculation should be adjusted accordingly.
Contingency provides an allowance for uncertainty such as minor rework, fitting adjustments, unexpected cutting losses, additional handling and small changes.
It should not be used as a substitute for a proper engineering review or for clearly identifiable project costs.
What costs should be included in a fabrication quote?
At minimum, consider material, direct labor, material waste, overhead, contingency and the required profit. Freight, subcontracting, taxes and other project-specific costs may also apply.
Can I add multiple materials?
Yes. Each material can be entered as a separate line with its quantity and unit cost.
Can I add different labor rates?
Yes. Each labor operation can have its own hourly rate.
Does material waste affect labor?
The calculator applies the waste allowance to material cost only. Additional labor caused by waste or rework should be included in the labor estimate.
What is overhead in a fabrication quote?
Overhead covers business and shop costs that are not directly assigned to a specific material or labor line.
Should profit be added before or after overhead?
For a simple fabrication estimate, profit is normally calculated after the relevant production and overhead costs have been included.
Can I use this for customer quotations?
Yes, as a pricing aid. The final quote should be reviewed against actual business costs, scope and commercial requirements.
Does this calculate a target profit margin?
No. The profit field is a percentage applied to the estimated cost before tax. Margin-based quoting uses a different formula.