Time and Materials Quote Calculator
Quote an hourly engagement with expenses and materials shown separately.
What this calculator does
Each element is charged only when entered; labour and expenses are reported separately so the client sees what is marked up.
Inputs and what they mean
- Currency
- — Amounts are shown in the currency you pick. No exchange rate is applied..
- Estimated hours
- — number value.
- Bill rate per hour
- — number value.
- Pass-through expenses (optional)
- — Optional component. Leave at 0 to exclude it from the result..
- Markup on expenses (optional)
- — Optional component. Leave at 0 to exclude it from the result..
- Materials and licences (optional)
- — Optional component. Leave at 0 to exclude it from the result..
How to use it
- Enter your own figures — the calculator never fills in a rate, price or benchmark for you.
- Press Calculate to see the result.
- Read the formula, variables, assumptions and source below the result before you rely on it.
Formula
Quote = (Hours × Bill rate) + Expenses × (1 + Expense markup) + Materials
Worked example
480 hours at $150 with expenses
Expenses are charged only when you enter them.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
Limitations and assumptions
Results depend entirely on the figures you enter and are rounded for display. They are for general information and education, not professional advice.
Reference: Rice University — Principles of Accounting, Volume 2: Managerial Accounting
Last reviewed:
Common questions
Formula, source and verification
Labour is billed at the agreed rate; pass-through expenses may carry their own markup and are shown apart from labour.
The question it answers: What will a time-and-materials engagement bill out at?
The formula
Quote = (Hours × Bill rate) + Expenses × (1 + Expense markup) + Materials
- H — Estimated hours
- (h). Hours expected on the engagement.
- R — Bill rate
- (currency/h). Agreed rate per hour.
- E — Pass-through expenses
- (currency). Optional recharged expenses.
- k — Expense markup
- (%). Optional percentage added to expenses.
- M — Materials and licences
- (currency). Optional materials charged to the client.
Units: Hours; currency; percentages.
What kind of calculation this is
Deterministic formula. The same inputs always give the same answer. The maths is fixed and does not depend on judgement.
Method
Each element is charged only when entered; labour and expenses are reported separately so the client sees what is marked up.
Assumptions built into the result
- Mathematical: The bill rate applies to every estimated hour.
Figures this calculator will never guess for you
- No industry-average rate, margin, overhead or ticket volume is inserted.
- No optional component is filled in on the user's behalf.
- No standard expense markup is applied.
Limitations
- A time-and-materials quote is an estimate of billing, not a cap; a cap has to be agreed separately.
Source and version
- Standard or reference
- Cost accumulation, cost-plus pricing, margin and markup (OpenStax, Principles of Accounting Volume 2: Managerial Accounting — job order costing, cost-plus pricing, margin and markup.)
- Published source
- Rice University — OpenStax (CC BY)
- Formula version
- Version 1
- Verification
- Reviewed against the cited source on
- How much weight the source carries
- Academic
- Applies to
- Currency
- Amounts stay in the currency you choose; no exchange rate is applied.
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