Bid Calculator

The calculator multiplies your labor rate per square foot by the total area of the job to produce your total labor cost. This means your labor cost scales automatically with job size. A 500 square foot apartment clean at $50 per square foot produces a $25,000 labor cost, while a 1,000 square foot job at the same rate doubles to $50,000. Entering an accurate labor rate per square foot is the most important input in the calculator because it sets the foundation that every other cost is built on top of.

Direct costs are the expenses that can be 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, direct costs, and indirect costs.

The markup percentage is applied to the total of your direct costs and labor costs combined, not just the direct costs alone. This means a higher labor cost on a large job produces a proportionally larger indirect cost figure even at the same markup percentage. For example, 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 regardless of job size.

Your labor rate per square foot should be built from your actual cost to deliver the service, not from competitor pricing alone. Start with your fully loaded hourly labor cost including wages, taxes, and benefits, then divide by the average square footage your team cleans per hour. Add a portion of your overhead expenses to arrive at a cost-based rate per square foot. Then compare that figure against your local market to assess competitiveness. If your cost-based rate is above market, the calculator helps you identify which other cost inputs need to be tightened before you lower your rate.

Permit fees apply in specific situations such as commercial cleaning contracts in regulated facilities, post-construction cleaning requiring site access permits, or certain municipal requirements for professional cleaning services in residential buildings. For standard residential cleaning jobs, 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 authority before finalizing any bid that involves a permitted worksite.

Run the calculator separately for each job using the specific area, labor rate, and cost inputs for that project. Comparing the total project costs, indirect cost amounts, and implied margins across jobs helps you identify whether your markup rate is producing consistent profitability at different job sizes. A markup percentage that works well on large commercial contracts may overcharge on small residential jobs or vice versa. Reviewing the outputs side by side gives you the information needed to set competitive rates by job type rather than applying a single rate across your entire service menu.