How to Price a Roofing Job [7-Step Pricing Plan]

Employment of roofers is projected to grow 6% from 2024 to 2034 — faster than the average across all occupations — and IBISWorld puts the U.S. roofing contractors market at roughly $92.5 billion in 2026.

With the increasing demands, you need to ensure that you price your roofing services accurately to achieve desired profits.

The process of estimating the price of a roofing job can be complicated and takes into account a variety of elements, such as the labor rate and price of supplies, industry standards, and general market circumstances.

In addition to helping the contractor increase their profits, fair and precise pricing guarantees that the client will obtain high-quality services at an affordable cost.

Therefore, in this blog, we'll walk you through the many aspects of how to price a roofing job.

So, without further ado, let's get started.

1. Clarify the Work Scope

You should offer a suitable estimate before submitting a roofing job bid. You must first think about the task scope concerning what it will encompass. When estimating roofing tasks, there are a few factors you must take into account.

If you want a head start on the paperwork, use our free roofing estimate template.

1.1 Meet with the client

Meeting with the client is the first step you should take before estimating the price of the service. Ask the client as many questions as you want. You can ask questions relating to:

• Client's budget.
• Client's roofing requirements and expectations.
• Which type of house or property does the client own?
• Are there any solar panels or satellite dishes on the roof?

Once you have a clear understanding of the work that the customer requires, be sure to inspect and measure the roof. This way you'll have accurate figures to work with.

1.2 Refer to building codes

To make sure you are not utilizing any restricted materials, you should also speak with the town's building inspector and become familiar with the building codes.

1.3 Roof inspection

Even if a client points out a particular spot on the roof where they think there is a leak, you should nevertheless do a comprehensive inspection of the whole roof.

The client could be unaware of more damage, and you might help them save money by spotting it before it does more harm. Additionally, this will assist you to gain the client's confidence and sell a bigger task.

Address some of the major issues to the client and mention all the issues in detail while making the estimation.

2. Get Precise Measurements

Getting precise measurements can help you determine how many squares you can install, which can help you estimate the material and labor required. Your client won't have the exact measurement estimate; you should confirm the number yourself even if they do.

In standard roofing terminology, a single square equals 100 square feet. You can get precise measurements of the roof by following the below-listed procedure.

3. Calculate Labor Costs

The labor cost is the most vital component of your estimation process. You need to consider different factors while finalizing your labor cost.

3.1 Finalize the labor hours

You need to calculate the total number of hours it will take for your team to complete the roofing job. Once done, multiply the number of employees by the total hours.

For example, if it can take three people 30 hours to complete the job, then the total labor hours are estimated to be around 90.

3.2 Calculate the hourly labor cost

You also need to focus on the total cost of labor by adding the hourly wage, taxes, insurance, and worker's compensation you pay to your employees. Our labor cost calculator walks you through that burdened-rate math.

If you can't do the calculation, you can estimate the average hourly rate of roofers in your market. Then, you can add a fixed percentage of expenses, like insurance and taxes, to get an exact hourly labor cost for your roofing business.

3.3 Add the total labor cost

Now, multiply the total labor hours by the fully burdened hourly labor cost to get the accurate labor cost for the job.

4. Calculate Material Costs

Once the labor costs are calculated, it's time to estimate the material costs.

• Based on the requirements, you must prepare the list of roofing materials required for the task's completion.
• Although the most commonly required roofing material is asphalt shingles, materials like solar panels, metal roofing, rubber slate, stone-coated steel, and even green roofs with plants can also be used based on roofing requirements.
• You can get in touch with the supplier that can offer you discounted rates on the bulk supply and deliver excellent quality roofing materials.
• You can calculate the procurement price and sell it to the clients at a retail price, including your roofing job cost.
• You can also offer a slight discount to allure the customers to choose your roofing material and service.
• Tally the material costs thoroughly, including flashing, underlayment, nails, and vents that the roofing contractors can ignore.
• You can also try to upsell the clients with the best roofing material quality that can help you increase your profits.

5. Know Your Miscellaneous or Overhead Expenses

Miscellaneous expenses or overhead costs, including uniforms, office rent, insurance, accounting, and software subscriptions, need to be included in your overhead expenses linked with completing the task.

You can either include the overhead expenses in your total roofing cost or list them separately to ensure transparency with your prospects.

Calculate your overhead cost per week, estimate your billable labor hours for the same week, and divide the overhead by the hours to get an hourly overhead figure. Our guide to calculating overhead cost covers the full method with worked examples.

6. Don't Forget Taxes

Taxes belong in the estimate, not as a surprise on the final bill. Whether sales tax applies to roofing labor, materials, or both varies by state — in many states the contractor pays sales tax on materials at purchase and builds it into the price, while some states also tax the labor or the full contract amount. Check your state's rules (or ask your accountant) before you set your pricing structure, and state clearly on the estimate whether your figures include tax.

7. Add Your Profit Margin

Once you have estimated the total cost, you need to add the roofing markup percentage to your products and roofing services that can help you drive business profits. Keep markup and margin straight — a 25% markup is only a 20% margin — and use our markup calculator and profit margin calculator to test your numbers before they go on the estimate.

You need to ensure that you don't overprice your job estimate and lose the opportunity to convert the prospect into a client, or underprice the estimate and trim your profits.

These steps can help you finalize an accurate and precise roofing project cost and achieve your desired business outcomes.

As a roofing contractor, you must choose between two pricing standards in the service industry that you must consider during the estimation process.

What Should Be Included in Your Roofing Bid?

When preparing a roofing bid, there are several important elements that should be included to ensure a comprehensive and accurate estimate. Here's what should typically be included in a roofing bid:

It's essential to provide a detailed and transparent roofing bid to ensure that both you and the client have a clear understanding of the project's scope, costs, and expectations. This can help prevent misunderstandings and ensure a successful roofing project.

When to Charge Fixed Rates

The fixed rates are ideal for pricing roofing jobs with years of experience in the industry and if you have a crystal clear idea about the project's scope. You need to be thorough with your estimations while charging a fixed price.

But sometimes, complexities can arise in the project, and your team needs to put in extra effort to get the work done within the limited time.

If you want to bypass the hassles of fixed prices, you can choose hourly rates as the preferred price estimation base.

When to Charge Hourly Rates

If you are new to the roofing business and have handled a limited number of roofing jobs, then you should choose hourly rates to earn decent profits and deliver a quality customer experience to your clients.

Also, if you are unsure about the project's scope and don't want your employees to come under serious pressure during the project's completion, the hourly estimation pricing model is the ideal choice.

But you need to avoid the manual estimation process to avoid different inefficiencies and human errors that can cause serious business losses.

You need professional commercial roof estimating software, like InvoiceOwl, that can automate and streamline your estimation process and help you achieve your desired goals with maximum efficiency. For the rest of your phone-based toolkit — measurement apps, photo documentation, and CRMs — see our roundup of the best roofing apps.

Conclusion

In conclusion, estimating the price of a roofing job requires careful consideration of a number of variables, including the roofing measurements, the price of the materials and labor, and overhead expenses.

By understanding the pricing components discussed above, roofing contractors can correctly and competitively price their services while also giving their customers the greatest value.

A roofing software may also streamline the pricing procedure and make it simpler for contractors to keep track of all their expenses.

The software solution makes it simpler for contractors to swiftly provide quotations for their clients by automatically calculating prices depending on the materials used, the cost of material and labor, and other considerations. When the job is approved, you can convert the estimate into an invoice in a click, or start from our free roofing invoice template.