Commercial cleaning
Janitorial contract escalation
Calculate a revised price from an explicit labor and cost change basket.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
new cost=sum(old category cost*(1+change)); price=cost/(1-margin).
Gross margin is profit divided by selling price. Enter all costs on the same time basis. Rates and productivity are your assumptions, not industry averages. Changes apply to cost categories, not the previous selling price. Enter your own changes; no wage index or legal escalation clause.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Current contract cost basket: One row per distinct current contract cost basket, on the stated row and period basis. Do not enter both components and their total.
- Current category cost (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for current category cost. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
- Category price change (%): Actual or explicitly assumed CATEGORY cost change, not change in previous selling price.
- Target gross margin (%): Owner-selected gross profit as a percentage of SELLING PRICE, not markup on cost.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Required selling price is $2,000.00 for the illustrative inputs below.
Example inputs
- Current contract cost basket
- Current category cost: $1,000.00
- Category price change: 5.00 %
- Current category cost: $500.00
- Category price change: 10.00 %
- Target gross margin: 20.00 %
- Required selling price
- $2,000.00
- Total cost
- $1,600.00
- Gross profit
- $400.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Calculate a revised price from an explicit labor and cost change basket.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.