Bond Cost Calculator

This calculator applies a tiered (sliding-scale) surety rate table to Contract Value ($): the first $100K of contract value is charged $25 per $1,000, the next $400K (up to $500K) at $15 per $1,000, the next $2M (up to $2.5M) at $10 per $1,000, and so on down to $5.00 per $1,000 for value above $10M. Because every tier boundary is far below this calculator's $1 billion maximum, Contract Value ($) moves Total Bond Premium ($) further than any other input across the calculator's full range -- rate discounts apply to each successive tier, not the whole contract value at once, so premium always grows with contract value even as the marginal rate steps down. Bond Type applies a full 1.0x multiplier for payment and performance combined (the default), but only 0.6x if you select performance-only or payment-only, reflecting that a single bond type typically costs less than the combined pair.

Credit / Risk Adjustment (%) scales the premium up or down linearly and directly -- every percentage point you enter changes Adjusted Premium ($) by that same percentage, in either direction, with no tier or threshold effects. Project Duration (months) only matters once it exceeds 12 months: below or at 12 months there is no Duration Surcharge ($) at all, and above 12 months the surcharge grows by 50% of Adjusted Premium ($) for every additional YEAR of duration beyond the first 12 months, prorated monthly -- that works out to roughly 4.17% of Adjusted Premium ($) per month beyond 12 (not half a percent per month). This calculator does not model insurer-specific underwriting factors like the contractor's bonding capacity, work-in-progress schedule, or claims history, which a real surety application would weigh alongside contract value.