Overhead and Profit Markup Calculator

Bid Price is built as a strict cascade, and that ordering means Profit (%) never touches Total Cost -- Total Cost is finalized (Direct Costs plus Job Overhead plus Home Office Overhead) BEFORE Profit is ever computed, so raising or lowering Profit % has zero effect on Total Cost across its full 0-50% declared range, even though it's the very next number computed after Total Cost in the cascade. Each markup layer compounds on everything before it, not on Direct Costs alone: Home Office Overhead applies to Direct Costs PLUS Job Overhead (not Direct Costs alone), Profit applies to the full Total Cost including both overhead layers, and Bond & Insurance applies last, to the subtotal that already includes profit -- so Bond & Insurance is effectively marking up the profit margin too, not just the underlying costs. Direct Costs ($) is the base every downstream dollar figure scales from, so Bid Price, Job Overhead, Home Office Overhead, Profit, and Bond & Insurance all rise monotonically with it across its full declared range.

Combined Markup (%) and Gross Margin (%) describe the same cascade from two different reference points -- markup as a percentage OVER Direct Costs, margin as a percentage OF Bid Price (revenue) -- so they're equal only when total markup is zero. That happens two ways: Direct Costs itself is zero (both metrics degenerate to 0 by definition), or every percentage input -- Job Overhead, Home Office Overhead, Profit, and Bond & Insurance -- is at its declared minimum of 0%, so nothing is actually added on top of Direct Costs and Bid Price equals Direct Costs exactly (verified: at Direct Costs $500,000 with all four percentages at 0%, both Combined Markup and Gross Margin read 0%, with Direct Costs nonzero).