> ## Documentation Index
> Fetch the complete documentation index at: https://docs.contractor-co-pilot.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Control markup and pricing rules with cost profiles

> Create reusable markup rule sets for materials, labor, equipment, and subs, then apply them to any estimate for consistent, profitable pricing.

A cost profile is a reusable set of markup rules that you apply to an estimate to turn raw costs into your sell price. Instead of recalculating markup on every estimate, you define the rules once in a profile — by category, by cost type, or as a flat overhead and profit layer — and apply them in a single step.

## What a cost profile contains

Each profile defines markup percentages across four cost categories:

* **Materials** — Applied to line items linked to your materials catalog
* **Labor** — Applied to loaded labor costs (base wage + burden)
* **Equipment** — Applied to hourly or daily equipment rates
* **Subcontractors** — Applied to subcontractor line items

On top of category-specific markup, a profile can also carry a global **overhead percentage** and a **profit margin** that stack on top of everything else.

## Create a cost profile

<Steps>
  <Step title="Open Cost Profiles">
    In the sidebar, go to **Costs > Cost Profiles**.
  </Step>

  <Step title="Create a new profile">
    Click **New Profile**.
  </Step>

  <Step title="Name the profile">
    Give it a name that reflects its intended use — for example, `Residential Standard`, `Commercial Rates`, `Competitive Bid`, or `Cost Plus`.
  </Step>

  <Step title="Set markup by category">
    Enter markup percentages for each cost category:

    * **Materials markup %**
    * **Labor markup %**
    * **Equipment markup %**
    * **Subcontractor markup %**
  </Step>

  <Step title="Add overhead and profit">
    Set the **overhead %** and **profit margin %** that apply on top of the marked-up subtotals.
  </Step>

  <Step title="Add category overrides (optional)">
    If a specific material or labor category needs a different markup rate from the default, add a **category override**. For example, you might apply a higher markup to specialty electrical materials than to general lumber.
  </Step>

  <Step title="Save">
    Click **Save**. The profile is now available to apply to any estimate.
  </Step>
</Steps>

## Apply a profile to an estimate

<Steps>
  <Step title="Open the estimate">
    Go to the estimate you want to price.
  </Step>

  <Step title="Select a cost profile">
    In the estimate header, open the **Cost Profile** dropdown and select the profile you want to use.
  </Step>

  <Step title="Review the updated totals">
    Line item pricing and the estimate total adjust automatically. All markup, overhead, and profit from the profile are reflected in the displayed sell prices.
  </Step>
</Steps>

<Tip>
  You can switch cost profiles on an estimate at any time. This is useful for quickly showing a client a competitive-price scenario versus a full-margin scenario without creating a duplicate estimate.
</Tip>

## How the markup calculation works

Markup layers are applied sequentially. For a material line item with a \$100 base cost, a 20% material markup, 10% overhead, and 15% profit margin:

| Step                  | Calculation  | Running total |
| --------------------- | ------------ | ------------- |
| Base cost             | —            | \$100.00      |
| Material markup (20%) | \$100 × 1.20 | \$120.00      |
| Overhead (10%)        | \$120 × 1.10 | \$132.00      |
| Profit margin (15%)   | \$132 × 1.15 | \$151.80      |

The stacking order (markup → overhead → profit) is fixed. If you prefer a flat compound markup instead, contact support to discuss profile configuration options.

## Default vs. custom profiles

Your organization has one **default profile** that is automatically applied to every new estimate. You can change the default at any time from the Cost Profiles list.

Custom profiles are available whenever an estimate needs a different pricing strategy — for example, a one-off government bid that requires cost-plus pricing, or a premium project where you're carrying a higher profit margin.

<CardGroup cols={2}>
  <Card title="Default profile" icon="star">
    Applied automatically to new estimates. Set this to your most common markup structure to reduce setup time on every new job.
  </Card>

  <Card title="Custom profiles" icon="sliders">
    Create as many as you need for different project types, clients, or competitive conditions. Switch between them on any estimate without restriction.
  </Card>
</CardGroup>

## Common profile configurations

| Profile name         | Typical use                                            |
| -------------------- | ------------------------------------------------------ |
| Residential Standard | Standard homeowner projects                            |
| Commercial Rates     | Commercial and industrial work                         |
| Competitive          | Low-margin bids where winning matters more than margin |
| Premium              | High-end or complex work with full-service margins     |
| Cost Plus            | Billing actual costs plus a fixed percentage           |

## Cost profiles and division pricing

<Note>
  If your organization uses division-level pricing overrides on materials, labor, or equipment, those division costs serve as the **base cost** before your cost profile markup is applied. The profile markup percentage is applied on top of whatever unit cost the division pricing returns — not on top of the organization default. This means division pricing and cost profiles stack multiplicatively, so review your effective sell price when combining both.
</Note>

## Next steps

<CardGroup cols={2}>
  <Card title="Estimates" icon="file-text" href="/estimating/estimates">
    Apply cost profiles when building or reviewing an estimate.
  </Card>

  <Card title="Materials" icon="package" href="/costs/materials">
    Review the material costs your profiles mark up.
  </Card>

  <Card title="Labor" icon="users" href="/costs/labor">
    Understand how loaded labor costs interact with profile markup.
  </Card>

  <Card title="Divisions" icon="building" href="/organization/divisions">
    Configure division-level cost overrides that feed into profiles.
  </Card>
</CardGroup>