Contractor Overhead Calculator
Overhead is the cost you pay even when no job is running. Add up your monthly overhead to see what each billable hour must carry and what percent of revenue it takes.
How the contractor overhead calculator works
Overhead does not go on one job; it must be spread across all your billable hours. If you ignore it, every bid looks profitable on paper while the business loses money.
Count only costs that are not tied to a single job. Materials and subcontractors belong in the job cost, not in overhead.
Use the result as an hourly add-on in your bids. Our contractor bid calculator then adds contingency and profit.
The formulas
Frequently asked questions
What counts as contractor overhead?
Costs you pay whether or not you have jobs: insurance, shop rent, vehicles, software, marketing and admin.
How do I add overhead to a bid?
Add overhead per billable hour to your labor cost for each hour on the job, then add profit.
What overhead percent is normal?
It varies widely by trade and size. Compare your percent over several months.
Are billable hours the same as hours worked?
No. Only hours you can charge a customer for count as billable.
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Estimates only. Results depend on the numbers you enter and are not financial, tax or legal advice.