# Contractor Bid Calculator

> Calculate contractor bid step by step: Bid = (direct + overhead + contingency) × (1 + markup), or ÷ (1 − margin).

Page: https://freecalculator.tech/tools/contractor-bid-calculator
Last reviewed: 2026-11-03

## Formula

Bid = (direct + overhead + contingency) × (1 + markup), or ÷ (1 − margin).

- Profit method is selectable: markup on cost or margin on price.
- Margin must be below 100%.
- The breakdown shows the effective profit as a share of price for either method.
- Bid = (direct + overhead + contingency) × (1 + markup), or ÷ (1 − margin).
- Inputs used: Currency, Material quantity, Material unit price, Labor hours, Labor rate, Equipment hours, Equipment rate, Subcontractor amount, and other shown inputs.

## Inputs

- Currency
- Material quantity
- Material unit price
- Labor hours
- Labor rate
- Equipment hours
- Equipment rate
- Subcontractor amount
- Overhead
- Contingency
- Profit
- Profit applied as

## Worked example: Bid for the small slab job

10% markup.
1. Material 20 × 150 = 3,000; labor 66.7 × 45 = 3,001.50; equipment 10 × 120 = 1,200; subcontractor 2,000.
2. Direct cost = 9,201.50.
3. Overhead 10% = 920.15; contingency 5% = 460.08 → 10,581.73.
4. Markup 10% = 1,058.17 → 11,639.90.

## Common questions

### Why are all prices blank?

Material prices, wages and rates vary by region and change often. The site never assumes them; enter your own or copy from a configured price table.

### What is the difference between markup and margin?

Markup is a percentage of cost (price = cost × (1 + p)); margin is a percentage of price (price = cost ÷ (1 − p)). 10% margin gives a higher price than 10% markup.

### Why are overhead and contingency on direct cost?

This is a common estimating convention. If your company applies them differently, adjust the percentages to match.

### How do I use the Contractor Bid Calculator?

Enter the required values for Currency, Material quantity, Material unit price, Labor hours, Labor rate, and the other fields shown. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

### What formula does the Contractor Bid Calculator use?

Bid = (direct + overhead + contingency) × (1 + markup), or ÷ (1 − margin). The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.

### Can the Contractor Bid Calculator be used for exact decisions?

Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.

## Limitations and assumptions

- All prices, rates and percentages are user-entered.
- One material line — add other materials into a combined quantity or run separately.
- Taxes, bonds and insurance are not included unless you put them in overhead.
- Results are estimates for planning and learning. Real designs, installations and bids must be checked by a qualified, licensed professional against the codes that apply where you work.
- The result depends on the values you enter for this contractor bid calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Sources

- OpenStax (Rice University) — https://openstax.org/details/books/contemporary-mathematics

## Cite this page

- APA: Free Calculator. (2026, November 3). Contractor Bid Calculator. https://freecalculator.tech/tools/contractor-bid-calculator
- MLA: "Contractor Bid Calculator." Free Calculator, 3 Nov. 2026, https://freecalculator.tech/tools/contractor-bid-calculator.
- Link: Contractor Bid Calculator — Free Calculator, https://freecalculator.tech/tools/contractor-bid-calculator