Roof replacement is the biggest single expenditure most homeowners will make on their house outside of the mortgage itself. For roofing contractors, it's also where the real money is — or where it isn't, if you're pricing off gut instinct instead of actual cost data.
The roofing market in 2026 is dealing with material costs that have stabilized somewhat after the post-pandemic spikes, but labor remains tight in most markets. Shingle prices have settled, but underlayment, ice and water shield, and accessories have crept up. Meanwhile, insurance companies keep getting pickier about what they'll cover. All of this affects how you should price your work.
Roof replacement costs by material
These are total installed costs per roofing square (100 sq ft) including tear-off, materials, and labor for a typical residential roof:
| Material | Materials per Square | Labor per Square | Total per Square | Total (30-square roof) |
|---|---|---|---|---|
| 3-tab asphalt shingles | $80–$130 | $100–$180 | $180–$310 | $5,400–$9,300 |
| Architectural (dimensional) shingles | $100–$180 | $110–$200 | $210–$380 | $6,300–$11,400 |
| Premium/designer shingles | $150–$280 | $130–$220 | $280–$500 | $8,400–$15,000 |
| Metal standing seam | $250–$500 | $200–$400 | $450–$900 | $13,500–$27,000 |
| Metal shingles / panels | $200–$400 | $180–$350 | $380–$750 | $11,400–$22,500 |
| Clay/concrete tile | $300–$600 | $250–$450 | $550–$1,050 | $16,500–$31,500 |
| Synthetic slate | $350–$550 | $250–$400 | $600–$950 | $18,000–$28,500 |
| Natural slate | $500–$1,200 | $400–$800 | $900–$2,000 | $27,000–$60,000 |
Architectural asphalt shingles dominate the residential market — roughly 75% of all roof replacements. They hit the right balance of cost, appearance, and lifespan. If you're a residential roofer, this is your bread and butter, and you should know your exact cost per square for these jobs down to the penny.
Full cost breakdown: asphalt shingle roof replacement
For a typical 30-square (3,000 sq ft) architectural shingle roof replacement:
| Component | Cost Range |
|---|---|
| Shingles (30 sq + 10% waste) | $3,300–$5,940 |
| Underlayment (synthetic felt) | $300–$600 |
| Ice and water shield (eaves, valleys) | $200–$600 |
| Ridge cap shingles | $150–$300 |
| Starter strip | $100–$200 |
| Drip edge | $100–$250 |
| Flashing (step, counter, chimney, pipe boots) | $200–$600 |
| Ridge vent / ventilation | $150–$400 |
| Nails, caulk, misc. | $100–$200 |
| Dumpster / disposal | $350–$700 |
| Permits | $75–$400 |
| Labor (tear-off + install, 3–5 person crew) | $3,300–$6,000 |
| Total | $8,325–$16,190 |
Most contractors land in the $9,000–$14,000 range for this job in average-cost markets. If you're consistently below $8,000, you're either in a very low-cost market, cutting corners on materials, or not making money.
Factors that affect roof replacement cost
Roof complexity
A simple gable roof with two planes is fast. A hip roof with dormers, valleys, skylights, and multiple penetrations takes significantly more time and materials. Waste factor goes up (from 10% to 15–20%), flashings multiply, and the crew moves slower on complex geometry. Price per square should increase $30–$80 for complex roofs.
Roof pitch (steepness)
Anything above a 7/12 pitch requires harnesses and roof jacks, which slows the crew by 20–30%. A 12/12 pitch can cut productivity in half compared to a 4/12. Steep roofs also require more underlayment and ice barrier in cold climates. Adjust your labor estimate accordingly — a steep roof is not the same job as a walkable roof.
Layers to remove
One layer of tear-off is standard. Two layers means double the tear-off labor and dumpster volume. Three layers (rare but it happens) is a nightmare. Some contractors overlay rather than tear off — check your local code, because many jurisdictions now limit overlays or require tear-off to inspect the decking.
Decking condition
You won't know the true condition of the plywood decking until the old shingles are off. Budget for replacing 5–10% of the decking on any tear-off. Rotted or delaminated plywood costs $70–$120 per sheet installed. On a 30-square roof, you might replace 5–15 sheets. Communicate this to the customer upfront — include a per-sheet price in your contract for decking replacement so there's no surprise.
Ventilation upgrades
If the existing roof has inadequate ventilation (common), you may need to add or upgrade ridge vents, soffit vents, or power ventilators. Proper ventilation extends the life of the new roof and is required by most shingle manufacturers for warranty coverage. Adding a ridge vent where none existed before costs $300–$800.
Chimney and skylight work
Every chimney needs new step flashing and counter flashing during a roof replacement. Skylights may need new flashing kits or replacement if they're near end-of-life. A chimney re-flash costs $200–$600 in labor and materials. A skylight re-flash is $150–$400. Skylight replacement (if needed) is $500–$1,500 per unit including the skylight and install.
Regional price variations
| Region | Adjustment | Notes |
|---|---|---|
| Northeast | +10% to +25% | Ice dam protection required, shorter season, higher labor |
| Southeast | -5% to +10% | Storm damage drives volume, competitive market, wind ratings matter |
| Midwest | -5% to +10% | Hail damage market, seasonal demand spikes |
| Southwest | +0% to +10% | Tile roofs common, hot-weather labor considerations |
| West Coast | +15% to +35% | Highest labor costs, fire-resistant materials in WUI zones |
What roofing contractors should charge
A healthy roofing company should hit 38–52% gross margin on residential replacements. Roofing has significant overhead — trucks, trailers, safety equipment, insurance (workers' comp for roofers is expensive), marketing, and warranty reserves.
- Per-square pricing: Most roofers price by the square rather than by the hour. Know your all-in cost per square (materials + labor + waste + overhead allocation) and add your margin. If your cost to install one square of architectural shingles is $200, you're charging $280–$330 per square.
- Materials markup: 30–45% on shingles, underlayment, and accessories. Buy in volume from your distributor to improve your cost basis.
- Minimum job charge: Small repairs and partial replacements should have a minimum charge of $500–$1,500 to cover mobilization, setup, and disposal. Don't do a $200 repair — it costs you more than that just to show up with a dumpster.
Run every bid through a job cost estimator. Roofing bids involve too many variables to keep in your head, and a $500 error on materials is the difference between a good month and a mediocre one.
Insurance work
Storm damage jobs through insurance can be highly profitable, but they come with their own complexities. Insurance adjusters use Xactimate pricing, which may or may not align with your actual costs. Know your market's Xactimate rates, understand supplement requests, and don't sign a contract for insurance work without understanding the scope the adjuster approved. Some contractors build their entire business around storm work — that's a valid model, but it requires different skills than retail roofing.
Common pricing mistakes
- Not measuring the roof. Satellite measurement tools (EagleView, RoofSnap) cost $15–$40 per report and give you accurate square footage, pitch, and complexity. Eyeballing a roof and guessing the squares is amateur hour.
- Ignoring waste factor. A complex roof needs 15–20% waste on shingles. If you're bidding at 10% waste and the reality is 18%, you just gave away 2.5 squares of shingles on a 30-square roof. That's $250–$500 in materials.
- Not charging for code upgrades. If the existing roof has no ice barrier, no drip edge, or inadequate ventilation, and code now requires it, that's an add-on cost, not something you absorb.
- Competing with storm chasers on price. Out-of-town crews that flood a market after a hailstorm offer rock-bottom prices because they're moving on in 60 days. You live here. Your reputation matters. Compete on warranty, workmanship, and local presence — not price.
- Forgetting workers' comp. Roofing has some of the highest workers' comp rates in construction — often $15–$30+ per $100 of payroll. If you're not factoring this into your labor cost, your real margin is much lower than you think.
Financing and payment structure
A $10,000–$15,000 roof is a significant purchase. Offering financing options (GreenSky, Hearth, Mosaic) typically costs 5–12% in dealer fees. Build it into the price or offer a cash discount. Customers who finance are less price-sensitive and more likely to upgrade materials.
For payment schedule: collect 30–40% at contract signing (or when materials are delivered), with the balance due at completion. Never collect 100% upfront — it kills trust. Never wait until 30 days after completion — you need to get paid before you move to the next job. Use a margin calculator to verify your profit before sending the final invoice.
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Roof replacement in 2026 ranges from $5,400 for a basic 3-tab job to $60,000+ for natural slate. The majority of residential roofs land in the $8,000–$15,000 range for architectural shingles. Price for your actual costs, know your market, and don't leave money on the table by guessing when you should be measuring. Track every job's profitability and adjust your per-square pricing quarterly as material costs shift.
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