BidMarkup.com

How to Use the Contractor Markup Calculator?

This free contractor markup calculator is built around the way real jobs are structured. Start by selecting your trade — each option pre-loads the overhead and contingency defaults typical for that discipline. Then enter your direct costs line by line: labor, materials, subcontractors, equipment rental, permits, and any other direct costs tied to the job.

What Is Contractor Markup?

Contractor markup is the percentage added to your direct job costs to cover overhead expenses and generate profit. It is one of the most important numbers in your business — and one of the most commonly confused. Many contractors use the words "markup" and "margin" interchangeably, but they are calculated differently and produce very different results.

How to Calculate Your Overhead Rate?

Your overhead rate is the most important input in this calculator — and most contractors either don't know theirs or haven't updated it in years. Here is how to calculate it accurately: Step 1: List every business expense that is not directly tied to a specific job.

What Should Contractors Include in a Bid?

A complete contractor bid accounts for every cost category. Underestimating — or forgetting — any of these is how jobs that look profitable end up losing money: Direct CostsLabor (fully burdened), materials, subcontractors, equipment rental, permits and fees, temporary facilities, project-specific insurance or bonds. Overhead AllocationYour overhead rate applied to direct costs.