Overhead and Profit Markup Calculator
Bid markup from overhead rate and target profit.
Inputs
Results
Bid Price ($)
$636,174.00
≈ 15 Teslas
Combined Markup (%)
27.23%
How to Use This Calculator
- Enter the total direct costs: labor, materials, equipment, and subcontractors.
- Set the job overhead percentage — typically 5–15% for general conditions, supervision, and site costs.
- Set the home office overhead percentage — typically 3–8% for corporate rent, admin, and insurance.
- Enter your target profit percentage and bond/insurance percentage.
- Read the bid price, combined markup percentage over direct costs, and gross margin percentage of revenue.
How the result changes with Direct Costs ($)
| Direct Costs ($) | Bid Price ($) | Combined Markup (%) |
|---|---|---|
| 100,000,000 | $127,234,800.00 | 27.23% |
| 350,000,000 | $445,321,800.00 | 27.23% |
| 650,000,000 | $827,026,200.00 | 27.23% |
| 900,000,000 | $1,145,113,200.00 | 27.23% |
What each input means
- Direct Costs ($)
- Total direct costs: labor, materials, equipment, and subcontractors.
- Job Overhead (%)
- General conditions: supervision, temp facilities, safety, cleanup (typically 5–15%).
- Home Office Overhead (%)
- Corporate overhead: rent, admin, accounting, insurance (typically 3–8%).
- Profit (%)
- Target profit margin applied to total cost (typically 5–15%).
- Bond & Insurance (%)
- Bond premium and builder's risk insurance (typically 1–3%).
What each result means
- Job Overhead ($)
- General conditions / job-site overhead amount.
- Home Office Overhead ($)
- Corporate / home office overhead amount.
- Total Cost ($)
- Direct costs plus all overhead.
- Profit ($)
- Profit amount based on target percentage.
- Bond & Insurance ($)
- Bond and insurance cost applied to the bid.
- Bid Price ($)
- Final bid price including all markups.
- Combined Markup (%)
- Total markup as a percentage of direct costs.
- Gross Margin (%)
- Profit as a percentage of bid price (revenue).
- Overhead / Revenue $
- Overhead cost per dollar of revenue.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersDirect Costs ($) = 500000, Job Overhead (%) = 8, Home Office Overhead (%) = 5, Profit (%) = 10 = 5 input(s) provided
- Calculate Bid PriceBid Price = subtotalBeforeBond + bondInsurance636174 = $636,174
- Calculate Combined Markup27.23 = 27.23%
- Calculate Job OverheadJob Overhead = directCosts * (jobOverheadPct / 100)40000 = $40,000
- Calculate Home Office OverheadHome Office Overhead = subtotalWithJobOH * (homeOfficeOverheadPct / 100)27000 = $27,000
Engine last updated . Checked against 1 independently-derived test — how we verify calculators.
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