Job Bid Calculator

1. Estimate labor hours and your loaded labor cost per hour.
2. Add materials, plus equipment, subcontractors and permits.
3. Set contingency, overhead and your target profit margin to get the bid price.

Quick answers

How do I price a construction job?

Add direct costs (labor, materials, equipment, subs), add contingency and overhead, then divide by (1 − target margin) so the margin is measured on the price.

Edge cases and limits

• Dividing by (1 − margin) is not the same as adding the margin percentage to cost — the second underprices.
• After the job, check the real numbers in the Job Profit Calculator.

The bid is built from the bottom up: direct costs first, then a contingency cushion, then overhead, and finally profit priced as a margin of the selling price so the percentage you set is the percentage you keep.

• Labor = hours × labor cost per hour
• Direct cost = labor + materials + equipment/subs/permits
• Contingency = direct cost × contingency %
• Overhead = (direct cost + contingency) × overhead %
• Break-even = direct cost + contingency + overhead
• Bid price = break-even ÷ (1 − target margin %)

A deck job needs 40 crew-hours at a $55 loaded rate, $3,000 of materials and $500 of permits and rentals. The contractor uses 5% contingency, 15% overhead and wants a 10% margin.

1. 1Labor = 40 × $55 = $2,200. Direct cost = $2,200 + $3,000 + $500 = $5,700.
2. 2Contingency = $5,700 × 5% = $285, giving $5,985.
3. 3Overhead = $5,985 × 15% = $897.75, so break-even is $6,882.75.
4. 4Bid = $6,882.75 ÷ 0.90 = $7,647.50, leaving $764.75 of profit — a true 10% of the price.

How do I calculate a price for a job?

Add up labor, materials and other direct costs, add a contingency for unknowns and your overhead share, then divide by (1 − your target margin). That last step is what makes the profit percentage hold up on the final price.

Why divide by (1 − margin) instead of adding a percentage?

Adding 10% to cost gives a 9.1% margin, not 10%. Dividing by 0.90 produces a price where profit is exactly 10% of what the customer pays.

What labor rate should I enter?

Your fully loaded cost per hour — wage plus payroll taxes, workers comp and benefits — not the rate you bill. The Labor Burden Calculator works that out.

How much overhead should I add?

Divide last year's overhead (rent, insurance, vehicles, office staff, software) by last year's direct job costs. That ratio is a far better number than a rule of thumb.

What is a reasonable contingency?

It depends on how well-defined the job is. Clear scopes on familiar work need little; remodels with hidden conditions need more. Keep contingency separate from profit so you can see what you are really charging for risk.

Is this the same as a construction estimate?

It is the pricing step. It assumes you already know the quantities and hours; the Construction Material Quantity and Concrete calculators help with the takeoff.