Create a detailed project budget by following these steps:

1. List All Materials: Use the 'Add Material' button to create a line item for each material required. Give each a descriptive name, quantity, and the cost per unit.
2. Add Labor Costs: If applicable, enter the total estimated cost for labor. This could be a flat fee or an hourly rate multiplied by the estimated project hours.
3. Include Overhead & Taxes: Enter your local sales tax rate to apply it to the subtotal. Consider adding a line item for 'Contingency' to cover unexpected costs.
4. Calculate Total Cost: The calculator will sum up all line items and labor to create a subtotal, then apply the tax rate to give you the final estimated project cost.

• Line Item: A single entry in a budget representing a specific cost, such as a type of material or a specific task.
• Subtotal: The total cost of all materials and labor before any taxes or fees are applied.
• Contingency: An amount of money added to a budget to cover unforeseen costs. Typically 10-20% of the subtotal.
• Fixed Cost: An expense that does not change with the amount of work, such as a permit fee or tool rental.
• Variable Cost: An expense that changes depending on the project's scale, such as the amount of lumber or number of fasteners.

"Never present a budget to a client without a contingency line item. Experienced professionals know that unexpected issues always arise—a hidden pipe in a wall, a discontinued material, a tool breaking mid-job. A 15% contingency fee isn't padding the budget; it's responsible, professional planning that protects both you and the client from sticker shock later." - Professional General Contractor

"Your time has value. Even for a hobbyist project, it's a good exercise to add a 'Labor' cost based on what a professional would charge. It gives you a much clearer picture of the true 'cost' of a project and helps you appreciate the value of the finished piece."

Example: Building a Deck
You create line items for lumber, concrete, fasteners, and railing. This material subtotal is $2,500. You estimate labor at $2,000.
Subtotal (Materials + Labor): $4,500
You add a 10% contingency: $450
Subtotal with Contingency: $4,950
With an 8% sales tax ($396), the final estimated cost you'd quote a client is $5,346.

• Forgetting 'Consumables': Failing to budget for items like sandpaper, glue, screws, paint brushes, and blades. These small costs add up quickly. Create a line item called "Shop Supplies" or "Consumables" to cover them.
• Ignoring Fixed Costs: Forgetting to include costs like permit fees, tool rental, or delivery charges.
• Underestimating Labor: Misjudging the time a project will take is a very common way to go over budget, especially when paying for help.
• Not Updating the Budget: A budget is a living document. If a material price changes or the project scope expands, the budget must be updated immediately to reflect the new reality.

• Client Quotations: Creating professional, itemized quotes for contracting or freelance work.
• Personal Project Budgeting: Planning and saving for a home renovation or woodworking project.
• Cost Comparison: Comparing the cost of different material choices (e.g., a deck made of cedar vs. composite).
• Financial Planning: Tracking actual expenses against the initial estimate to analyze profitability and improve future budgeting.