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Simple Calculators

Construction Bid Calculator

Estimate construction project costs including materials, labor, subcontractors, overhead, and profit margin

Project Information
Labor & Additional Costs

Electrical, plumbing, HVAC, etc.

Estimate only: Based on typical material costs per square foot and industry-standard overhead and profit percentages. Actual bids vary widely by region, material prices, and contractor — get detailed local bids before committing.

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Quick summary

A professional construction bid includes direct costs (materials, labor, subcontractors, permits) plus overhead (15%) for business operations and a profit margin (10%). Material cost alone for a standard build runs $50–$175/sqft depending on quality, before labor and other costs.

Reviewed by Simple Calculators TeamLast reviewed

How to use this calculator

  1. Enter the inputs requested by the calculator.
  2. Choose the units or options that match your situation and review the assumptions.
  3. Run or update the calculation to see the result.
  4. Review the result, breakdown, and formulas shown on the page.
  5. Check the inputs, units, dates, and limitations before saving or sharing the result.

Construction Bid Formula

Total Construction Bid

Total Bid=(Materials+Labor+Subs+Permits)×1.15×1.10\text{Total Bid} = (\text{Materials} + \text{Labor} + \text{Subs} + \text{Permits}) \times 1.15 \times 1.10
Materials
Square footage × material cost/sqft (budget: $50, standard: $100, premium: $175)
Labor
Labor hours × hourly rate
Subs
Subcontractor costs (electrical, plumbing, HVAC, etc.)
Permits
Local permit and inspection fees
1.15
15% overhead (insurance, equipment, office, supervision)
1.10
10% profit margin

Worked example

1,500 sqft residential, standard materials, 500 hrs @ $45/hr, $15K subs, $2K permits

Given
Materials = 1,500 × $100 = $150,000
Labor = 500 × $45 = $22,500
Subcontractors = $15,000
Permits = $2,000
Calculation
(150,000+22,500+15,000+2,000)×1.15×1.10(150{,}000 + 22{,}500 + 15{,}000 + 2{,}000) \times 1.15 \times 1.10
Result
$240,443 total bid (~$160/sqft)

Frequently asked questions

What is included in construction overhead?

Overhead covers all business costs not directly tied to a specific project: office rent, equipment depreciation, insurance (general liability, workers comp), vehicle costs, estimating time, supervision not billed to the project, and administrative staff. Standard overhead markup is 10–20%, with 15% being a common middle ground.

How much profit margin should a contractor make?

Residential contractors typically target 10–15% net profit margin. Commercial projects often have tighter margins (5–10%) due to more competitive bidding. On smaller jobs, margins can be higher (15–25%) to account for mobilization costs and risk. Always separate overhead recovery from profit.

What is the cost per square foot to build a house?

National averages for new residential construction: budget/entry-level $100–$150/sqft total, standard $150–$250/sqft, custom/premium $250–$500+/sqft. These are all-in costs including foundation, framing, MEP, finishes, and contractor overhead/profit. Location significantly affects pricing — coastal markets are often 30–50% higher.

What subcontractor costs should I include?

Major subcontractor categories: electrical ($8–$12/sqft for residential), plumbing ($10–$15/sqft), HVAC ($8–$12/sqft), roofing ($4–$8/sqft), drywall ($2–$5/sqft), flooring ($5–$15/sqft). These vary significantly by region and system complexity.

How are permit costs calculated?

Permit fees are set by local jurisdictions and typically based on project value or square footage. Common ranges: residential permits $500–$5,000, commercial $2,000–$30,000+. Always check with your local building department. Permits ensure inspections that protect both contractor liability and client safety.

Key terms

Overhead
Indirect business costs not assignable to a specific project — typically 10–20% of direct costs
Subcontractor
Specialized trade contractor (electrical, plumbing, HVAC) hired by the general contractor
Change Order
Written authorization to modify the original contract scope, price, or schedule
Cost Per Square Foot
Total project cost divided by total square footage — used for quick comparisons and estimates

Methodology, sources & limitations

This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.

For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.