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Bid Price Calculator

Build a job bid from material and labor costs, an overhead allowance, and a profit markup. Check the cost breakdown before quoting.

Bid price
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How to use this calculator

  1. Enter the material cost for the job, including the material allowances you have chosen.
  2. Enter the total labor cost for the same scope of work. Use a loaded labor rate if you want payroll burden included.
  3. Enter overhead as a percentage of material plus labor cost, then enter profit markup. The markup applies after overhead is added.
  4. Review excluded costs below before treating the result as a quote. All dollar inputs must use the same currency.

Formula and cost basis

Bid = (materials + labor) × (1 + overhead / 100) × (1 + profit markup / 100)

Worked example

With $2,500 in materials and $1,800 in labor, direct cost is $4,300. A 15% overhead allowance adds $645, making the cost basis $4,945. A 20% markup adds $989, for a $5,934 bid. That $989 is 16.67% of the bid, not a 20% margin, and is only profit relative to the costs included here.

Assumptions and common mistakes

  • This model has material and labor cost fields; it has no separate equipment, subcontractor, permit, delivery, contingency, or sales-tax fields. Account for those separately before issuing a complete quote.
  • Do not include the same overhead in both your hourly labor rate and the overhead percentage. Choose a consistent cost basis.
  • The example percentages illustrate the math; they are not recommended pricing rates for your business.

Build your estimate: quantity, productivity, labor, equipment, and bid price →

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FAQ

Is 20% profit markup the same as 20% margin?

No. A 20% markup on $4,945 adds $989 and produces a $5,934 price. The amount above included cost is 16.67% of that price. Use the target margin calculator if your goal is a percentage of selling price.

What does the overhead percentage apply to?

It applies to materials plus labor. The profit markup then applies to that subtotal including overhead. The two percentages are applied sequentially, not simply added together.

Does this calculator include equipment or sales tax?

There are no separate inputs for equipment or sales tax. Prepare those costs separately and reconcile them with the estimate before quoting. Check whether your entered material and labor costs already include applicable amounts to avoid counting them twice.