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Construction Bid Calculator
Check whether a proposed construction bid covers true job cost and reaches your target margin before you send it.
Check a proposed quote
Bid status
This bid is profitable but below target
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Job Cost Variance Calculator
Compare estimated vs actual job costs, find variance and measure profit leakage.
Continue to estimate vs actualThe method behind these numbers
How to price a contractor job without guessing
Pricing is a sequence, not a single number. Build the cost first, solve for the price second, and check the bid before it leaves your desk.
What this calculation tells you
Short answer. A bid check compares the price you intend to quote with the cost and margin the job actually needs. QuoteFormula takes the true job cost, the proposed price before tax, your target margin and the payment-processing rate. It shows the required price, the profit the bid would leave, the actual margin and the gap to target. A bid can clear break-even and still miss the target: break-even only means no loss, while target margin is the return the business planned to earn. The check does not validate whether the estimate is complete or the scope is clear, and it assumes both prices cover the same work. Use it immediately before a quote leaves your desk, and price change orders separately. A passing check does not prove the job will be profitable; it only tests the price against the assumptions entered.
How this calculator works
The formula
required price before tax = true job cost ÷ (1 − target margin − payment-processing rate)How to use it
- Enter the true job cost and the proposed price before tax.
- Enter the target margin and payment-processing rate used in your pricing.
- Compare the actual margin with the target and review the break-even gap before sending the bid.
Reading the result
A bid can be above break-even and still miss the target. Treat the gap as a decision point: reduce cost, change scope, negotiate price or consciously accept a lower return. The check does not validate whether the estimate itself is complete.
Worked example
Illustrative example: with a $6,358.80 true cost, a 25% target margin and a 3% processing rate, the required price is $8,831.67. A proposed price of $8,000 leaves $1,401.20 of profit after the $240 fee, a 17.5% margin instead of the 25% target.
Limitations
- A passing bid check does not guarantee the estimate is complete or the scope is clear.
- The comparison assumes both prices cover the same work and the same processing rate.
- Change orders and added scope need their own check; do not quietly absorb them into the original bid.
Read the calculation methodology for the contracts behind every result or the full guide, How to price a contractor job without guessing.
Frequently asked questions
- What if the bid is above break-even but below target margin?
- Break-even only means no loss. A bid below target margin still misses the return the business planned. The gap shows how many dollars and margin points the bid gives up before you send it.
- Does a passed bid check guarantee a profitable job?
- No. The check tests price against the estimate. It cannot confirm that the estimate is complete, the scope is clear or the crew will hit the assumed productivity. Use it as a price test, then review scope and productivity separately before you rely on the result.
- Should change orders go through the same check?
- Yes, separately. Added scope changes both cost and price. Folding it into the original bid hides the change and distorts the estimate-versus-actual comparison later. Keep the original bid and the change order as separate records.