Bid Calculator

The calculator multiplies your labor rate per hour by the estimated hours to complete the job to produce your total labor cost. This means your labor cost scales automatically with job duration. A $50 per hour rate on a 100-hour job produces a $5,000 labor cost. Changing either input updates the labor cost instantly and flows through to the total project cost output. Entering an accurate hourly rate and a realistic hours estimate is the most important step in producing a bid that reflects what the job actually costs to deliver.

Direct costs are the expenses tied specifically to the job: material costs, equipment costs, travel costs, and permit fees. These are entered individually and summed by the calculator to produce the total direct cost figure. Indirect costs are calculated by applying your markup percentage to the combined total of direct costs and labor costs. They represent overhead, profit, and business costs that are not tied to a single job line item but still need to be recovered through the bid. The final project cost is the sum of all three: labor cost, direct costs, and indirect costs.

The markup percentage is applied to the combined total of your labor cost and direct costs, not just the direct costs alone. This means a higher labor cost on a longer job produces a proportionally larger indirect cost figure even at the same markup rate. A 15% markup on a combined cost of $7,800 produces $1,170 in indirect costs. The same 15% on a combined cost of $15,000 produces $2,250. Understanding this relationship helps you set a markup rate that consistently covers your overhead and profit target regardless of job size.

Travel costs should be calculated based on actual vehicle operating cost or a standard mileage rate rather than estimated loosely. A job that requires 45 minutes of drive time each way is a meaningfully different bid than one 10 minutes from your base of operations, even if the scope of work is identical. Enter the realistic travel cost for each specific job rather than using a flat figure across all bids. On jobs with long or multi-leg travel, accurate travel cost input prevents a cost that looks small per job from compounding into a significant margin loss across a week of work.

Permit fees apply on jobs involving structural work, electrical modifications, plumbing changes, or any scope that your local jurisdiction requires to be inspected. For routine repair and maintenance work, permit fees are typically zero. The calculator includes the field so you never forget to account for it on jobs where fees apply. Always confirm current fee schedules with your local building department before finalizing any bid that could involve a permit requirement. Absorbing an unexpected permit fee after a bid is accepted reduces your margin on that job with no way to recover it.

Run the calculator for each job using its specific inputs and review the total project cost output alongside the indirect cost and labor cost breakdown. Comparing these figures across similar job types helps you identify whether your markup rate and labor rate are producing consistent, competitive bids or whether certain job categories are coming in higher than the market will support. If a specific job type consistently requires a project cost that is above your target price range, the calculator helps you identify which cost category needs to be addressed before you can bid that work profitably.