🔧 Free tool

Construction Bid Margin Calculator

Enter your costs and target margin, get the exact price to bid — without guessing, and without confusing margin and markup.

Bid costs

Materials ($)

Labor ($)

Subcontractors ($)

Overhead (%) Office, vehicles, insurance, admin

Target net margin (%) Profit target, as % of final selling price

Results — Price to Bid

—

Recommended selling price

—

Profit ($)

—

Equivalent markup

Direct costs (materials + labor + subs)	—
Overhead	—
Total cost before margin	—
Target profit	—
Recommended selling price	—

💡 Margin is calculated on the final selling price (not on cost) — the most reliable way to hit your real profit target.

FAQ — Margin on a Construction Bid

What is the difference between margin and markup?

Margin is profit expressed as a percentage of the selling price. Markup is profit expressed as a percentage of cost. A 25% margin equals roughly a 33% markup. Confusing the two is a common and costly mistake for contractors — this calculator shows both.

What margin should a contractor target?

It varies by trade and region, but most general contractors target a net margin of 10% to 20% after overhead, on top of a markup on direct costs of 15% to 30% to cover overhead and profit.

How do I calculate the selling price for a bid?

Add your direct costs (materials, labor, subcontractors), add overhead (%), then divide by (1 - target margin) to get the selling price that guarantees your target margin on the final price, not just on cost.