Contractor Bid Estimate Calculator
Estimate a contractor bid from materials, labor hours, subcontractor costs, overhead and profit — the full built-up price you can put in front of a client.
How it works
Direct = materials + labor hours × rate + subs · Break-even = direct × (1 + overhead%) · Bid = break-even ÷ (1 − profit%)
A sound bid is built up in layers: direct costs (materials, labor, subs) first, then overhead as a percentage to cover the costs that are not tied to one job, and finally profit. Profit is applied as a margin on the fully loaded cost, so it is divided in rather than added on. Under-costing overhead is the most common reason contractors "win" jobs that lose money.
Worked example
60 labor hours at $55 is $3,300; add $3,500 materials and $1,200 subs for $8,000 direct. A 12% overhead adds $960 to reach $8,960 break-even; a 15% profit margin makes the bid 8,960 ÷ 0.85 = $10,541.18.
Frequently asked questions
What is the difference between overhead and profit?
Overhead covers real ongoing costs — insurance, vehicles, office, tools — spread across all your jobs. Profit is what is left for you after every cost, including overhead, is paid. Both belong in a bid but they are not the same money.
Should profit be a markup or a margin?
This calculator treats profit as a margin on the loaded cost (cost ÷ (1 − profit%)), which is how the profit percentage shows up on your books. Adding a flat markup instead would leave you with a smaller true margin.
How do I estimate overhead percentage?
Divide your annual non-job costs by your annual direct job costs. Many small trades land somewhere between 10% and 20%; track it over a full year for an accurate figure.
Related calculators
Educational estimate, not financial advice.