Free buyer utility · contractor bid preparation
Construction bid margin and markup calculator
A bid can look profitable and still miss your target margin. Price direct costs, overhead and a contingency allowance, then test how a cost overrun changes your result.
This calculator does not recommend a market bid or guarantee a profit. It exposes your assumptions before a bid is submitted, and helps you identify what a bidding or estimating platform must preserve when it applies markup, margin and revisions.
Enter your own costs and percentages (including 0 when applicable) to calculate a bid. Results remain blank until the inputs are complete and valid.
Planning worksheet, not a construction bid or financial recommendation. Enter verified direct and indirect costs yourself. This model does not calculate sales tax, bonding premiums, financing, retainage, change orders, jurisdictional labor rules or bid competitiveness. No values are sent to a server or analytics.
How is markup different from margin?
Markup = (bid − cost) ÷ cost. Margin = (bid − cost) ÷ bid. If your estimated total cost is $36,000 and your target margin is 20%, the target bid is $36,000 ÷ 0.80 = $45,000. That is a 25% markup on cost, not 20%. The form uses margin as a percentage of the selling price, not a shortcut markup.
These definitions agree with Procore's construction markup-versus-margin explanation (external). All costs and targets in this tool are your inputs, not a borrowed profitability benchmark.
What is the overrun stress test?
The model adds a contingency allowance to your cost plan, then compares that allowance with a scenario where your direct costs rise. It uses the greater of the reserve and the scenario's direct overrun, rather than counting both. If an overrun exceeds the reserve, that additional cost reduces the estimated profit dollar-for-dollar. This is a what-if calculation, not a forecast of actual change orders or commodity prices.
The calculator deliberately excludes financing, sales tax, bonding, and contract-specific risks. Verify subcontractor scopes, subcontractor quotes, quantity takeoffs, local labor rules and contract conditions before relying on any number.