Contractor Change Order Pricing Calculator
Price a change order with separate markups for labor, materials, subs, and equipment, and apply customer credits correctly. Generate a printable change order for review and approval.
CHANGE ORDER
Proposed change order — subject to approval under the governing contract
Date: November 3, 2026
| Item | Amount |
|---|---|
| Net contract adjustment | $0.00 |
Schedule adjustment: No change to the contract schedule
Proposed change order — subject to approval under the governing contract. Unless the governing contract provides otherwise, its other terms are not changed by this document. Signatures below record acceptance of this proposal; whether that is sufficient approval depends on the governing contract and applicable law.
Customer approval — signature
Printed name
Date
Contractor — signature
Printed name
Date
What this calculator does
Change orders are where profit on a project is often quietly lost: extra work gets priced on the spot, credits get netted against costs, and markup is skipped or applied twice. This calculator prices each category of added cost with its own markup, applies agreed credits once to the customer price, and generates a printable change order for review and approval.
Inputs explained
- Added labor, materials, subcontractors, equipment — your direct cost for the new or changed work.
- Markup by category — added on top of each category's cost to cover overhead and profit.
- Customer credits — the agreed price reduction for work taken out of the original scope.
- Additional charges — customer-facing fees such as a permit revision, added at face value.
- Tax — entered manually if it applies; never calculated for you.
- Original contract and schedule extension — optional, used for the revised contract total and schedule impact.
Formulas
Category charge = category cost × (1 + markup% ÷ 100)— for labor, materials, subs, and equipment/other separatelyMarked-up charges = sum of all category chargesNet change order = marked-up charges + additional charges + tax − creditsRevised contract = original contract + net change order
Markup is applied once, only to your direct costs. Extra charges, tax, and credits are customer-price amounts and are never marked up.
Worked example
A customer adds six recessed lights to a kitchen remodel and drops two pendants from the original plan. The original contract is $48,500.
- Labor: 16 hrs × $52 = $832, at 25% markup = $1,040
- Materials: $270 fixtures + $130 supplies = $400, at 20% = $480
- Electrician sub: $600, at 10% = $660
- Lift rental: $90, at 15% = $103.50
- Marked-up charges: $2,283.50 (on $1,922 of cost)
- Plus $75 permit revision, minus $300 agreed pendant credit: net change order $2,058.50
- Revised contract: $48,500 + $2,058.50 = $50,558.50, with a 2-day schedule extension
Use "Load example values" above to see this in the calculator.
Assumptions
- Labor cost is fully burdened (wages plus taxes, insurance, and benefits) and contains no profit.
- Credits have already been agreed with the customer as price amounts.
- All amounts are in US dollars.
Limitations
- It does not calculate sales tax, retainage, or bond premiums.
- It does not track multiple change orders against each other. Enter the current contract value as the original amount each time.
- The printed summary is not a substitute for your contract's required change-order form or legal review.
Frequently asked questions
Why use different markups for each category?+
Each type of cost carries different risk and handling. Labor you manage directly often carries more markup than a subcontractor you only coordinate, and materials may need to cover ordering, pickup, and restocking. Separate rates let you price each one honestly instead of using a single blended number.
How are customer credits handled?+
Credits are the agreed price reduction for work removed from the original contract. They come off the customer price once, after markup. They are not subtracted from your costs before markup, because the original price for that work already included its own overhead and profit.
Is markup the same as margin?+
No. Markup is a percentage of cost; margin is a percentage of price. A 25% markup turns a $100 cost into a $125 charge, which is a 20% margin. The calculator shows the matching margin under each markup field so you can check.
Why doesn't the calculator work out sales tax?+
Tax rules for construction vary by state, by city, and by whether the work counts as a repair or a capital improvement. Enter the tax amount you've confirmed, if any, and it's added to the total as entered.
Is the printed change order a legally approved document?+
No. It is a proposed change order, subject to approval under the governing contract. Signing it does not automatically make it valid — follow your contract's change-order procedure and applicable law, and get the required written approval before starting the extra work.
Results are estimates for planning purposes. See our disclaimer.