Kitchen remodeling estimating software that wins more jobs

A kitchen price comes together in six stages, in the order the work happens:

1. Protection and demolition: dust containment, floor protection, removing cabinets, counters, appliances and flooring, and the dumpster.
2. Framing and rough-in: wall changes, plumbing supply and drain, new circuits, lighting and the hood duct.
3. Walls: new or patched drywall, finished and ready for paint.
4. Cabinets and counters: base and wall cabinets, crown molding and the countertop.
5. Surfaces: the backsplash and the floor.
6. Fixtures and finish: sink, faucet, disposal, dishwasher hookup, lights, hood, paint, cleanup and the punch list.

Line items: price each one from your hours

These are the common lines on a kitchen estimate and what each is measured in:

• By the linear foot: cabinets, counters and lighting runs.
• By the square foot: floors and backsplash.
• By the each: fixtures, appliances and circuits.

The hours and prices are yours to set, and every line's hours are editable.

Cabinets are where labor piles up

Example: Take a kitchen with 20 feet of base cabinets and 16 feet of wall cabinets, rebuilt in the same layout with a laminate top. The hours below are example figures; say your own records show your installers need:

Work	Your hours
Remove 36 feet of old cabinets	14
Set 20 feet of base cabinets	18
Hang 16 feet of wall cabinets	16
Install 20 feet of laminate countertop	7
Total	55

That's before the old countertop comes off or a single backsplash tile goes up.

Wall cabinets take more time per foot than base cabinets because they're lifted, leveled and fastened overhead.

Each trade at its own labor rate

A kitchen mixes carpenters, plumbers, electricians, tile setters and painters, and each earns a different wage in each metro. BuildWell builds each line's labor 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%.

What the cabinet labor comes to

Example: Say your carpenter costs you $28 an hour. Use your real number. The 55 hours of cabinet and countertop work above come to:

• Wages: 55 × $28 = $1,540
• With 100% overhead: $3,080
• With 20% markup: $3,696 for that labor

Plumbing, electrical and tile lines work the same way at their own wages. If you sub a trade out, use your sub's price plus your markup.

Cabinets, counters and the client's choices

• Cabinets you supply: BuildWell prices stock cabinets at stores near the job, at the grade you chose. For semi-custom or custom lines from a showroom, enter your cost from the supplier's quote as the material price. Prices you type in are saved for the next estimate.
• Cabinets the client buys: answer that the customer supplies them. They stay on the estimate, so the client sees your installation labor and what it covers, but they aren't charged.
• Countertops: laminate is in the catalog by the foot. Stone and quartz usually go to a fabricator who templates after the base cabinets are set. Add their price as your own line, and say in your terms how a change in slab selection is billed.

Use allowances for unpicked selections

For tile, hardware and fixtures the client hasn't picked, price the line at a stated allowance and put the rule in your terms. Selections above it are billed as a change, and selections below it are credited.

BuildWell starts material markup at 20%, and you can change it on any estimate.

Codes, permits and older homes

• Permits: most jurisdictions require a permit when a kitchen's plumbing, electrical or walls change. When BuildWell asks whether you're pulling one, answer yes, and your permit fee from Pricing settings is added to the estimate.
• Kitchen circuits: the electrical code your area has adopted calls for GFCI protection at the counters and dedicated small-appliance circuits. A new counter layout can mean new circuits, not just new outlets.
• Homes built before 1978: the EPA's Renovation, Repair and Painting rule requires lead-safe work practices, by a certified renovator, when you disturb painted surfaces. Tell BuildWell the house is pre-1978, and it adds the lead-safe setup and cleanup line.

Set deposits to cover the cabinet order

Cabinets are often ordered and paid for weeks ahead. A common structure:

• Deposit: at signing, large enough to cover the cabinet order.
• Progress payments: after rough-in passes inspection, and after cabinets and counters are in.
• Balance: at completion and walkthrough.

Some states limit the deposit a home improvement contractor can collect before work starts. Check yours before you set the percentage.

Pay depends on what you do versus sub out

What kitchen remodelers earn comes down to what they do themselves and what they sub. A remodeler who sets cabinets and tile earns that labor; one who subs it out earns the markup.

Wages for each trade also vary widely by metro. Your rates, markups and change orders decide your income more than any wage table.

Self-employment tax is 15.3% of net earnings

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.

That's in addition to federal and state income tax. Hold back a share of every payment, including deposits.

Pay quarterly estimated taxes

Nobody withholds tax from your jobs, so pay estimated tax during the year on Form 1040-ES. The four payments are usually due in mid-April, mid-June, mid-September and mid-January.

Track these deductions

Kitchen remodeling businesses commonly deduct:

• tools and equipment
• the business share of your truck or van
• fuel
• insurance, license and certification fees
• dumpster and disposal costs
• phone and software

Keep receipts and log mileage as you go.

Send a 1099-NEC to subcontractors 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 from every sub before the first payment.

Sales tax on materials depends on your state

States treat remodeling contractors differently. Some have you pay sales tax when you buy cabinets and 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 in your state and to your business.