Estimating Math: Takeoff, Labor, Markup vs. Margin, Overhead & Profit

Passing the exam isn't only code — the Planning & Estimating section tests whether you can build a bid. This lesson covers the money math.

1. Material takeoff

A material takeoff is a detailed count and list of every material the job needs — devices, fixtures, wire, boxes, fittings — read off the plans. It's the foundation of the estimate: get the count wrong and every later number is wrong.

Rounding to purchase units: suppliers sell in packages. If you need 45 devices and they come in boxes of 10, you must buy 5 boxes (you can't buy a partial box) — always round up.

2. Labor cost

Labor cost = labor-hours × labor rate. If a task takes 40 hours at $45/hour, that's 40 × $45 = $1,800. (Estimators often get the hours from published "labor units" per device or per 100 ft of raceway.)

3. Markup vs. margin — don't mix them up

These use different denominators, so the same job gives two different percentages: