Understand the formula contractors use to price a roof replacement — from material and labor costs to overhead and profit margin.
Most roofing contractors calculate job cost using a per-square method. One roofing "square" covers 100 square feet. The total job price combines materials, labor, and overhead.
Determine your total roof area in roofing squares. See our square footage guide for the full method.
Example: 2,000 sq ft roof = 20 roofing squares
Material cost depends on the roofing product chosen. Here are typical 2024-2025 material costs per roofing square (materials only, no labor):
| Material | Cost/Square | Lifespan |
|---|---|---|
| 3-Tab Asphalt Shingles | $90-$130 | 15-20 years |
| Architectural Shingles | $100-$170 | 25-30 years |
| Premium/Designer Shingles | $150-$350 | 30-50 years |
| Standing Seam Metal | $350-$700 | 40-70 years |
| Corrugated Metal | $150-$300 | 25-40 years |
| Clay Tile | $600-$1,000 | 50-100 years |
| Concrete Tile | $350-$600 | 40-75 years |
| Natural Slate | $1,000-$3,000 | 75-200 years |
Labor typically runs 60% of the total job cost for standard shingle roofs. Labor rates vary by region, roof complexity, and pitch:
Contractors add overhead (insurance, vehicles, office costs) and profit margin on top of direct costs. A typical overhead and profit multiplier is 1.35-1.55 (35-55% markup).
| Line Item | Cost |
|---|---|
| Materials (20 sq × $140) | $2,800 |
| Labor (20 sq × $200) | $4,000 |
| Tear-off (20 sq × $125) | $2,500 |
| Dump fees (20 sq × $60) | $1,200 |
| Permits | $350 |
| Subtotal | $10,850 |
| Overhead & Profit (×1.40) | $4,340 |
| Total Job Price | $15,190 |
| Per Square Foot | $7.60/sqft |
Our cost calculator factors in all these variables automatically — just enter your roof details.