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How to Price Carpentry Jobs: Labour, Materials and a Worked Example

How to Price Carpentry Jobs: Labour, Materials and a Worked Example

Most carpentry quotes go wrong in the same place. The materials list is accurate to the last box of screws, and the labour is a number somebody felt good about. Then the job runs a day long, the trim needs a second trip, and the margin you thought you had is gone before the final invoice goes out.

This guide covers the pricing models carpenters actually use, how to build a labour rate from your real costs, how to handle materials and markup, and how to put all of it into a quote a client can say yes to without surprises on either side.

Three ways carpentry work gets priced

Hourly or day rate

You charge for the time on site, plus materials. It suits repair work, punch lists, and anything where you cannot see what is behind the wall until you open it. The client carries the risk of the job running long, which is fair when nobody can predict it.

The downside is the same as in any trade: the faster and better equipped you get, the less a job pays. A day rate softens that a little, because a half day of travel and setup is no longer billed as a few scattered hours.

Fixed price per job

You quote one number for a defined piece of work, such as building a deck, hanging a run of doors or fitting a kitchen's worth of cabinets. Clients prefer it because they can budget for it, and you keep the benefit of every efficiency. You also carry the risk, which is why a fixed price is only as good as the scope written underneath it.

Unit pricing

You charge per unit of output: per linear foot of trim or handrail, per square foot of decking or flooring, per door hung, per cabinet box installed. It is quick to quote and easy for a client to compare. It works well once you have timed enough jobs to know what a unit really takes you, and badly before that, because a single awkward room can double the time per foot.

Plenty of carpenters mix all three: unit prices for the repeatable parts, a fixed price for the whole job, and an hourly rate written into the quote for anything outside the scope.

Build your labour rate from your costs

Your labour rate is not your hourly wage. It has to cover everything that keeps the business running and still leave a profit.

A useful reference point is what the work pays as a job. The Bureau of Labor Statistics puts the median pay for carpenters at $29.12 an hour, or $60,580 a year, as of May 2025, and reports that about a quarter of carpenters are self-employed. If you work for yourself, that wage is roughly what you are replacing, and your rate needs to clear it with room to spare, because an employer was covering costs you now pay yourself.

Those costs, at a minimum:

  • Self-employment tax. The IRS sets it at 15.3 percent, made up of 12.4 percent for Social Security and 2.9 percent for Medicare.
  • Insurance. General liability at the very least, and workers' compensation once you take on help.
  • Tools and their replacement. Saws, nailers, batteries and blades wear out on a schedule you can predict.
  • Vehicle and fuel, which scale with how far you travel for work.
  • Licensing and permits where your state or city requires them.
  • Unbilled time. Site visits, quoting, supply runs, invoicing and chasing payment.

That last item is the one that quietly sinks most rates. If you work 45 hours a week and only 30 of them are spent on paid work, divide your costs by 30, not 45. Our guide to bill rate vs pay rate walks through the same arithmetic step by step.

If you employ helpers, add their wages plus the employer share of payroll taxes, which the IRS puts at 6.2 percent for Social Security and 1.45 percent for Medicare, before you set a crew rate.

Materials and markup

Price materials from a current supplier quote, not from memory. Lumber and sheet goods move enough that a price you used last season can be wrong by the time the job starts.

Then decide how you charge for them. Most carpenters add a markup on materials, and it is not profit padding. It pays for the time spent choosing, ordering, collecting and returning materials, the cost of carrying them before the client pays, and the waste you cannot avoid. Whatever percentage you settle on, apply it consistently and make sure your quote says whether materials are included or billed at cost plus a markup.

Build waste into the quantity, not just the price. Cuts, defects and mistakes all consume material, and the waste on a room with lots of angles is higher than on a plain rectangle. Your own past jobs are the best guide to how much extra to order.

For jobs with expensive or custom materials, such as hardwoods, cabinet hardware or special-order doors, consider asking the client to pay for those up front. It keeps you from financing their kitchen. Our guide on how to ask for upfront payment covers how to put that to a client.

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A worked example

The figures below are round numbers chosen to show the method, not benchmarks for your area. Swap in your own.

A client wants a new built-in bookshelf wall. You estimate the job at three days for one carpenter, which is 24 hours on site.

  1. Labour. Your costs work out to a full rate of $75 per billable hour. 24 hours at $75 is $1,800.
  2. Materials. Your supplier quote for sheet goods, hardwood edging, hardware and finish, including waste, comes to $1,100. With a 15 percent markup, that is $1,265.
  3. Other costs. A dumpster bag and one extra supply run, $85.
  4. Subtotal: $1,800 + $1,265 + $85 = $3,150.
  5. Contingency. Built-ins in older houses rarely meet square walls. Add 10 percent, $315, for a quote of $3,465.

Before you send it, check the number two ways. Does it look sensible against similar jobs you have done? And would you still be happy with it if the job took a fourth day? If the answer to the second question is no, the contingency is too thin or the time estimate is too optimistic.

What to put in a carpentry quote

A quote is the scope. Everything you leave out is something the client will assume is included.

  • The work, specifically. Dimensions, materials, species and finish, and the number of units.
  • What is not included. Painting, drywall repair, electrical work, removal of old units, disposal.
  • How materials are charged, and how long the materials price is valid.
  • Allowances for anything the client has not chosen yet, such as hardware, with the amount stated.
  • Hidden conditions. What happens if you open a wall and find rot, wiring or out-of-level framing, and the hourly rate that applies.
  • Changes. That any change to the scope is agreed and priced in writing before the work is done.
  • Payment terms: deposit, any progress payments, and when the balance is due.
  • How long the quote is valid.

For larger jobs, split billing into a deposit, one or more progress payments, and a final invoice on completion. Our guide to deposits and progress billing for contractors goes into the detail.

Where carpentry jobs lose money

  • Trips you did not price. Every extra trip for a forgotten part is travel time nobody pays for.
  • Small changes done for free. "While you are here" work adds up quickly. Price it before you do it.
  • Finish work underestimated. Scribing, filling, sanding and fitting to uneven walls take longer than the rough build, and they are what the client judges you on.
  • Old houses priced like new ones. Nothing is square, level or where the drawings say it is.
  • Materials quotes left open. A price you give today may not survive a two month wait before the client says yes.
  • Rates never reviewed. Tools, insurance and fuel cost more every year. A rate you set three years ago is a pay cut.

About the price ranges online

Search for what carpentry costs and you will find confident per hour and per foot ranges. Most come from lead-generation sites that sell jobs to contractors, and they blend very different regions, job types and levels of finish into one number. They can tell you roughly what a homeowner may expect to pay. They cannot tell you what a job costs you.

The numbers you can rely on are your own timed jobs, your own costs and a current supplier quote. Price from those, and keep a record of how long each job actually took so your next quote is better than the last. For the broader choice between billing by the hour and quoting a fixed price, see flat rate vs hourly, and for another trade's version of this method, how to price a roofing job.

Free templates and a rate calculator for your next carpentry job, no signup

Frequently asked questions

How much should a carpenter charge per hour?

There is no single right rate, because it depends on your costs, your area and the work. Start from your full costs, including self-employment tax, insurance, tools, vehicle and unbilled time, divide by the hours you actually bill, then add your profit. As a reference, the Bureau of Labor Statistics puts median pay for carpenters at $29.12 an hour as of May 2025, and a self-employed carpenter's rate needs to clear that comfortably.

Should I quote carpentry jobs hourly or at a fixed price?

Use a fixed price when the scope is clear and you can estimate the time confidently, because clients prefer it and you keep the benefit of working efficiently. Use hourly for repairs, punch lists and any job where hidden conditions make the time impossible to predict, and write an hourly rate into fixed quotes for anything outside the scope.

How much should I mark up materials on a carpentry job?

Choose a percentage that covers the time you spend sourcing, collecting and returning materials, the cost of paying for them before the client pays you, and unavoidable waste, then apply it consistently. State in the quote whether materials are included in the price or billed at cost plus markup.

How do I estimate the time a carpentry job will take?

Break the job into stages such as setup, rough build, installation, finish work and cleanup, estimate each one, and compare the total with similar jobs you have timed before. Allow extra for older houses and detailed finish work, which usually take longer than expected.

Should I take a deposit for carpentry work?

A deposit is common and sensible, especially when the job needs expensive or custom materials that you would otherwise pay for yourself. For larger jobs, combine a deposit with progress payments and a final invoice on completion, and set out the schedule in the quote.

What should a carpentry quote include?

The specific work with dimensions and materials, what is excluded, how materials are charged, any allowances, how hidden conditions and changes will be handled and priced, the payment schedule, and how long the quote is valid.

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