Precise estimates are key for roofing professionals and homeowners alike.
If you quote too low, your profit margins shrink. If you quote too high, customers might look elsewhere. Precision in this industry fosters trust and sets projects up for success.
This guide walks you through the vital steps in getting estimates spot-on, highlights pitfalls to steer clear of, and shows how tools like ServiceTitan can refine these processes for a better bottom line.
How to Estimate a Roofing Job Step-by-Step
When creating a quote for a roofing job, it’s tempting to simply take an estimate based on square footage and add in a profit margin. This method may have worked in the past, but there’s much more to modern house roofing than just the cost of materials.
Labor costs, the roof’s age and condition, overhead expenses, and dealing with modern infrastructure all contribute. Under- or overbidding can seriously hurt your bottom line. Even worse, it may mean potential customers lose confidence in your work.
Here’s what roofing contractors need to know to give precise estimates every time.
1. Understand the Scope of the Job
Start with a thorough client consultation and roof inspection to get the best idea and most accurate quote possible.
Don’t just talk to the client. Get out the ladder and flashlight to inspect the conditions and state of the roof you’ll be working with. Check for damage, age, materials, and any surprises under the roof itself.
Use this checklist to guide your inspection:
Evaluate the condition of the roof for any damage and wear. This includes the drip edge, flashing, gutters, underlayment, and decking.
Determine the age of the roof.
Assess the roofing structure for signs of sagging or instability.
Identify the existing roofing materials (e.g., asphalt, shingles, metal roofing).
Consider obstacles like chimneys, skylights, HVAC, and cabling (power, fiber optics, Ethernet).
Technology can make the process much easier (and impress your clients). Employ tools like measuring tapes, drones, point-to-point lasers, and dedicated software to provide the most accurate scoping possible.
The ServiceTitan mobile app is one of the best tools for roof job scoping. ServiceTitan allows contractors to sync measurements and documentation straight to their mobile devices, reducing the likelihood of errors and saving time.
2. Calculate Material Costs
Calculating the costs of materials required for roofing jobs is still one of the most critical steps of the estimation process. When you think about roofing materials, asphalt shingles come to mind because they’re budget-friendly and straightforward to lay down.
Then there’s metal, which stands the test of time and can help save on energy bills. Tile roofing might catch your client’s eye for its standout looks despite pulling more from their wallet.
If you’ve been at this a while, you know that we measure these essentials by squares, with one square equalling 100 square feet of roof territory.
When it comes time to calculate exactly what you’ll need, convert the roof dimensions into the number of squares needed to cover the job.
Here’s a formula for accurately estimating the number of squares needed for any given roofing job based on roof measurements:
Calculate Ground Square Footage: Basic Square Footage = Length x Width
Adjust for Roof Pitch: Due to the increased surface area, different roof pitches require more material than a flat measurement. Use the following table to find the roof pitch multiplier:
Roof Pitch | Multiplier |
3/12 | 1.04 |
4/12 | 1.06 |
5/12 | 1.08 |
6/12 | 1.12 |
7/12 | 1.16 |
8/12 | 1.20 |
9/12 | 1.24 |
10/12 | 1.30 |
11/12 | 1.36 |
12/12 | 1.42 |
Calculate the Adjusted Square Footage: Once you have worked out the multiplier for roof pitch, adjust for the increased surface area with the following formula: Adjusted Square Footage = Square Footage x Multiplier
Convert to Roofing Squares: Adjusted Square Footage / 100
Calculate the total cost: Total Material Cost = (Number of Squares x Material Cost Per Square) + Additional Material Costs (nails, underlayment, edging, ridge cap, etc.)
ServiceTitan’s material pricing database feature ensures that estimates are always accurate and aligned with the current market price. The pricebook helps roofing contractors provide precise and reliable quotes that enhance customer confidence and satisfaction.
ServiceTitan’s contractor inventory software also offers robust task management and asset tracking. These features help maintain optimal stock levels and streamline workflows.
3. Estimate Labor Costs
There are a handful of important elements to consider when estimating your project’s workforce expenses.
Begin by calculating your team’s labor hours and wage rates. Consider how much it will cost by the hour for each crew member and factor in regional wage differences that can significantly impact overall costs.
Use this formula to estimate your total labor costs:
Total Labor Cost = (Labor Hours per Square x Number of Squares) x Hourly Wage
In addition to this, you should also consider the size of your crew and the estimated hours they will be on the job site. Factors such as roof dimensions and design intricacies, such as steeper pitches and hard-to-reach areas, can extend the scope of work and should be considered.
Materials can also influence labor costs. For example, roof shingles often require less installation time than metal roofing, which is more time-intensive.
When you consider all of these factors, you can calculate a more accurate total labor cost that reflects a more precise scope of the project.
4. Account for Overhead and Profit
As a roofing business, doing the job well is only half the battle. Accurately accounting for your overhead ensures the job remains profitable. All of these costs must be factored into every single roofing estimate to maintain the profitability of your business.
Typical expenses include:
Permits
Insurance (including worker’s compensation)
Marketing and advertising
Equipment maintenance
Office supplies and utilities
Vehicle expenses and fuel
To calculate the overhead as a percentage, this basic formula can be applied:
Overhead Percentage = (Total Overhead Expenses / Total Direct Costs) x 100
Next, set a predefined markup to ensure your jobs stay profitable. This can vary depending on your unique circumstances, but the roofing industry standard is 10-20%, averaging 15%.
Markup calculation formula:
Total Cost = Direct Costs + Overhead Costs
Selling Price = Total Cost x (1+Markup)
Using the above formula, if your desired markup is 20%, here’s what it would look like:
Selling Price = Total Price x (1+0.20)
5. Factor in Additional Costs
When you’re sizing up a roofing gig, remember the extra expenses that can sneak up on your budget.
Tearing off old shingles and clearing out debris isn’t free. Costs vary depending on where the work happens and what you toss out. It pays to research local dump fees, so your estimates hit the mark.
Let’s not forget those extras homeowners throw at us: skylights, fancy trims, or complicated infrastructure in the attic (cabling, fiber optics, ducting, etc.). They could calculate costs and respond quickly to both the workload and the bill. It’s always best to allow some flexibility in terms of cost estimates for those sneaky issues like bad wood or wobbly beams hiding under old roofs.
These additional costs are difficult to estimate if you don’t have real-time data at hand. With ServiceTitan, Guardian Roofing was able to calculate costs and give fast responses to customer queries because they had the client history and metrics available instantly.
“I can't even imagine going back to pre-ServiceTitan because of how archaic it was and not having real-time information,” Lori said. “Having to wait until the end of the month to know your metrics is just not scalable. It's really hard to grow that way. You find yourself really reactive.”
6. Create a Professional Proposal
Presenting a detailed and transparent roofing contract is the next step in the estimation process.
Your professional proposal should include:
Company information – Business name, address, and contact information.
Client Details – The best contact details for your potential clients.
Project Description – Outline the scope of work, including the materials and services, in fine detail.
Timeline – Clearly outline the start and finish dates.
Itemized Breakdown – List all materials, labor, and additional expenses individually, with their associated costs.
Payment Terms – Detail the payment schedule and accepted methods of payment.
Warranty Information – Carefully detail any warranty offered on your work.
ServiceTitan’s mobile app is designed to make your job proposals easier. The Pricebook Pro simplifies the process of creating job proposals through the Pricebook SetUp Wizard, allowing you to establish an all-in-one pricing solution in one day.
The Custom Repairs and Auto Proposals features help technicians generate precise and detailed job proposals that effectively communicate their value to homeowners.
7. Present the Estimate and Close the Deal
Clear communication is key when the time comes to meet with homeowners and discuss your roofing estimate.
Walk them through every part of the quote, from materials to labor cost, ensuring they understand where each dollar goes. If there are questions or hesitations, address them head-on as transparently as possible.
Homeowners don’t open their doors to just anyone, they need to know they’ve got pros on their side. That’s where your track record comes in handy as you can leverage your experience and highlight what sets you apart from local competition.
Lori from Guardian Roofing notes that “reviews are everything,” and that’s why using software like ServiceTitan’s Marketing Pro to manage your reputation is vital in earning this customer trust.
“You can be a 4.5- to a 5-star shop. But if you're down in the low fours or 3.9, you have so much profit to gain in the business by just getting better at what you're doing rather than trying to grow what you already have.”
Be ready to tweak that initial number without cutting into your own profits too deeply. Show how opting for your services isn’t merely an expense but an investment in a durable and high-quality roof that will protect their home for years.
ServiceTitan helps close the deal by enabling you to create sleek and polished proposals tailored for each client, reducing paperwork and streamlining your workflow with up-to-date asset management.
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What Are the Different Types of Roofing Estimates?
There are generally three types of roofing estimates: ballpark, detailed, and supplementary. Understanding these is key to providing accurate and suitable proposals.
A ballpark estimate gives a rough cost range based on preliminary appraisals and is useful in the initial stages of the discussions.
A detailed estimate includes the specific costs for materials, labor, and additional add-ons and expenses. It provides a detailed breakdown and should only be given once the project scope is clear.
Supplementary estimates are any adjustments made to initial estimates due to unforeseen changes or the requirement for additional work that wasn’t identified in the scope investigations.
Avoiding common estimation mistakes and the need for supplementary estimates ensures you produce an accurate estimate, but what are the best ways to avoid them?
What Are Some Common Estimating Mistakes to Avoid?
The best way to avoid estimating mistakes is to be aware of them. With this in mind, here are the most common mistakes that can eat away at your profits and undermine your roofing company:
Mistake 1: Underestimating Your Materials
Failing to account for waste or the full scope of the roofing material can lead to shortages and overshooting the promised completion timeline.
To avoid your roofing project just breaking even, always include a buffer and ensure materials and labor appraisals are performed accurately.
Mistake 2: Neglecting Your Overhead
If you’re just starting out, overhead costs like permits, insurance, and never-ending administration costs can be overlooked.
Always be aware of your overhead costs and factor them into every roofing project.
Mistake 3: Forgetting Permits and Regulatory Fees
Regulatory oversight and compliance issues can become very costly very quickly. Research all your local council and regional laws and include all necessary permits and fees in your estimates.
Mistake 4: Ignoring the Age and Type of Roof
It might seem minor, but factoring in the roof type and its age is crucial. This is especially important for historic dwellings that predate modern building codes. Consult with a specialist or local authority who can provide you with valuable insights for these jobs.
They can help with accurate scoping and job appraisal to avoid costly mistakes. For very old roofs, a complete replacement may be more cost-efficient for your clients than fixing small issues.
How Do You Estimate the Cost of Roof Repairs Versus a Full Replacement?
If a roof requires many repairs, is very old, or is dangerous, a full roof replacement (rather than repair) might be needed.
A thorough assessment helps to determine whether fixing specific issues or investing in an entirely new roof is more cost-effective. When dealing with such a scenario, employ the following steps to make an accurate determination:
1. Assess the Extent of the Damage
A few missing shingles or minor leaks don’t warrant replacing an entire roof. Widespread deterioration or structural issues like damaged eaves, sagging supports, or several large water ingress points generally do.
A good rule of thumb is that if over 30% of the roof is damaged, a replacement is typically more cost-effective than attempting ongoing repairs.
2. Consider the Roof’s Age
An older roof nearing the end of its lifespan is not worth repairing as the costs will add up very quickly and repairing fresh issues will become an ongoing process.
A few small problems can quickly become a large repair job as the decaying structure falls apart. In comparison, a newer roof with isolated damage can be repaired quickly, with repairs often lasting until it too becomes too old to be salvaged.
3. Compare Costs and Long-Term Value
It’s a difficult situation for your customers: fix issues as they appear or pay up for a more long-term solution via installation of a new roof.
Fixing a roof can seem like a bargain at first glance, but if you're patching up problems regularly, those bills start to add up.
On the other hand, shelling out more cash for a new roof might hurt now, but it pays off later. Sturdy construction holds up against the elements, lowers energy bills thanks to better insulation, and increases the property's value.
Raise these points with your customers, do what is right for them, and don’t forget to include your profit margins in the roofing cost regardless of what work you end up performing.
A roof doesn’t last forever, which is why Laing Roofing added a rare section to their service model: a Service and Replacement Division, or “owning the life cycle of a roof.”
“ServiceTitan is [allowing us] to manage all that stuff in between— the annual inspections, providing recommendations, repairs and maintenance throughout the year,” Maier said. “These are big assets for property managers. To have a half-a-million-dollar roof, and then manage it for 30 years, we want to go back to that same location every year.”
What Is the Typical Profit Margin for Roofing Contractors?
Profit margins are essential for any trade, and roofing is no different. In essence, those margins are a measure of financial health — the difference between what you earn on jobs and what those projects cost you.
So, how much should roofers expect to keep after expenses? On average, it’s around 15%, though this can climb to between 20% and 40% for some jobs. This benchmark isn’t set in stone; local demand, competition levels, and even your state can influence these figures.
To hit the higher end of that margin scale, you must tighten your budget without compromising quality. Submitting an accurate roofing bid from the get-go sets up each project for success, while managing resources intelligently ensures you finish within budget.
The Bottom Line
Getting your roofing estimates spot-on comes down to a few key points: knowing the full extent of the job, pinpointing material and labor costs, covering your overhead without missing a beat, and tossing in those extra expenses.
If you’re looking to streamline the process, sync all the moving parts, generate accurate proposals, and monitor the hourly rate, then using technology like ServiceTitan makes perfect sense.
Interested in giving your roofing business an edge? Consider taking ServiceTitan's Field Service app and platform for roofers for a test drive today and see what it can offer you.
ServiceTitan Software
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