Bathroom remodeling estimating software that wins more jobs

A bathroom remodel price is built from the work in the order it happens:

1. Protection and demolition: containment, floor protection, removing fixtures and finishes, and haul-off.
2. Rough-in: framing changes, blocking, plumbing supply and drain, electrical circuits and the fan duct.
3. Walls and waterproofing: drywall, cement board, waterproofing membrane and the shower pan.
4. Tile: setting, grouting and caulking floors and walls.
5. Fixtures and finish: tub or shower, vanity, toilet, faucets, trim, paint and the punch list.

Common line items and how each is measured

These are the common lines on a bathroom estimate. Each is measured one of three ways:

• By the square foot: area work.
• By the linear foot: drain runs.
• By the each: fixtures and whole tasks.

The hours and prices are yours to set. Your crew and your subs work at their own pace, and every line's hours are editable.

Tile is where bathroom labor adds up

Example: Take a shower with 80 square feet of wall tile and a 40-square-foot floor. The hours below are example figures; say your own records show your crew needs:

Work	Your hours
Cement board on the walls	2.5
Waterproofing membrane	1.5
Wall tile	10
Floor tile	4.5
Grouting walls and floor	4.5
Total	23

That's before the shower pan, the trim pieces and the caulk.

Price each trade at its own rate

A bathroom isn't one trade, so it shouldn't have one labor rate. Plumbers, electricians and tile setters earn different wages, and those wages differ by metro.

BuildWell builds each line's rate in three steps:

1. Wage: the median wage for that line's trade in your metro.
2. Overhead: your labor overhead, which starts at 100%, doubling the wage.
3. Markup: your labor markup, which starts at 20%.

Example: Say your tile setter costs you $30 an hour. Use your real number. Those 23 hours of tile work come to:

• Wages: 23 × $30 = $690
• With 100% overhead: $1,380
• With 20% markup: $1,656 for that labor

Subbed trades: your sub's price plus markup

If you sub out a trade, replace its lines with your sub's price plus your markup. The estimate still shows the client the work, and your total still covers your coordination.

Price materials at this week's local cost

Price the materials you buy at what they cost near the job this week, plus your markup. BuildWell starts material markup at 20%.

Use allowances for finishes the client picks

For finishes the client chooses, set an allowance: a dollar amount per square foot of tile, or per vanity and per faucet.

Say in your terms how selections are billed:

• Above the allowance: billed as a change.
• Below the allowance: credited.

Clients understand allowances. They protect you from a $4 tile becoming a $22 tile after the estimate is signed.

Price permits, lead work and hidden conditions

• Permits: most jurisdictions require one when plumbing or electrical work changes. Add your permit fee as its own line. In BuildWell, a flat permit fee is added automatically when the estimate includes permits.
• Homes built before 1978: the EPA's Renovation, Repair and Painting rule requires lead-safe work practices, done by a certified renovator, when you disturb painted surfaces. Price the setup, containment and cleanup as their own line.
• What's behind the wall: for subfloor, rot and hidden plumbing, state what's included and how you'll price what you find. The client agrees to the method before demolition, not after.

Bill a deposit, then progress payments

Bathroom remodels run for weeks and front-load material costs. A common structure:

• Deposit: at signing, to order materials.
• Progress payments: after rough-in passes inspection, and after tile.
• Balance: at completion.

Check your state's rules: some limit how much deposit a home improvement contractor can take.

Your income depends on your trades and margin

What remodelers earn depends on the trades they do themselves and the margin on what they sub out. Wages differ widely by metro and by trade.

A remodeler who sets their own tile earns that labor; one who subs it out earns the markup and the coordination. Your labor rates, markups and allowances decide your income more than any wage table.

Self-employment tax is 15.3%

As a sole proprietor or single-member LLC, you pay self-employment tax on your net earnings: 15.3% in total.

• Social Security, 12.4%: applies to net earnings up to the Social Security wage base, which is $184,500 for 2026.
• Medicare, 2.9%: applies to all of it.
• Deduction: you can deduct half of the self-employment tax on your income tax return.

This is on top of federal and state income tax. Set money aside from every payment.

Pay estimated taxes every quarter

Make estimated payments during the year on Form 1040-ES. They're usually due in mid-April, mid-June, mid-September and mid-January.

Deposits for jobs that start next quarter are still income when you receive them for most cash-basis businesses. Plan for them.

Track these deductions as you go

Remodeling businesses commonly deduct:

• tools and equipment
• the business share of your vehicle
• fuel
• insurance and license fees
• certification and training
• dumpster and disposal costs
• phone and software

Keep receipts and log mileage as you go.

Send a 1099-NEC to subs you pay

If you pay an unincorporated subcontractor for services, you'll generally need to send them a Form 1099-NEC. For payments made in 2026 and later, that applies once you've paid them $2,000 or more in a year, up from $600 before 2026.

Collect a Form W-9 and a certificate of insurance before you pay any sub.

Sales tax on materials depends on your state

States treat remodeling contractors differently:

• Some have you pay sales tax when you buy materials.
• Others have you charge it to the client on materials or on the whole job.

Check your state's revenue department. In BuildWell, sales tax applies to materials only, not labor, at the rate you set.

This is general information, not tax or legal advice. A tax professional who works with contractors can tell you what applies to your state and business.