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//// Business · Pricing

Subcontractor Pricing Markup

Sub cost + overhead + markup + contingency → total billable and gross margin.

Where this fits

📦 Business & Seller OpsGoing 1099FreelancersFounders

This tool lives inside Going 1099 and is most useful for freelancers and founders.

Corp Tax Rate21%
SE Threshold$400
FICA Cap 2024$168,600

Sub Cost & Markups

Total billable
$10,626.00
charge to owner
GC profit
$1,320.00
15.0% markup
Gross margin
24.7%
on total billable
Multiplier
1.33×
on sub cost

Cost build-up

Sub cost$8,000.00
Overhead (10.0%)+$800.00
GC profit (15.0%)+$1,320.00
Contingency (5.0%)+$506.00
Total billable$10,626.00
1

Sub cost

= $8,000.00

The price your subcontractor billed you

2

GC overhead allocation

overhead = subCost × overhead%

= $8,000.00 × 10.0%

= +$800.00

Covers your admin, coordination, insurance costs for this sub scope

3

GC profit markup

profit = (sub + overhead) × markup%

= $8,800.00 × 15.0%

= +$1,320.00

4

Contingency

contingency = (sub + overhead + profit) × contingency%

= $10,120.00 × 5.0%

= +$506.00

Cover change orders, RFIs, and scope creep from the sub

5

Total billable to owner

= $10,626.00

24.7% gross margin · 1.33× multiplier on sub cost

Key insight

Most GCs mark up subs 10–20% on top of 5–15% overhead. Specialty subs (electrical, mechanical) typically get less markup than commodity work — they're harder to replace on short notice. Always include a contingency line: sub scope changes hit your profit, not theirs.

Use this result in →

📊Contractor Markup vs Margin📋Change Order Pricer

#ShowYourWork

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