Small Business Bid Calculator

This small business bid calculator allows you to estimate every project accurately.

What is a small business bid calculator?

A Small Business Bid Calculator empowers technicians and contractors to accurately estimate the total cost of a project. This tool simplifies the process by allowing users to input essential details such as labor rates, estimated work hours, material costs, equipment expenses, travel charges, and permit fees. While manual calculations are always an option, leveraging this calculator minimizes the risk of human error, saves valuable time, and boosts overall productivity and efficiency.

How do I determine the labor rate for my project?

The labor rate is the hourly wage you pay your technicians or contractors, including benefits, taxes, and overhead costs. You may also factor in a profit margin. To stay competitive, research local industry rates and adjust accordingly to reflect your expertise and service quality.

What should I include in the material costs input?

Material costs encompass all the supplies and components required for completing the project. This includes items like wiring, outlets, switches, circuit breakers, tools, and any other necessary materials.

How do I calculate the markup percentage?

The markup percentage is calculated based on your company’s overhead costs and desired profit margin. Overhead may include administrative expenses, insurance, and utilities. A common markup range is 10% to 20%, but this can vary based on your specific business needs.

Can I use the calculator for different types of electrical projects?

Yes, the calculator is versatile and can be used for a wide range of Small Business projects, whether they are residential, commercial, or industrial. You can customize the input fields to suit the unique requirements, materials, and costs specific to each type of project, ensuring accurate calculations.

Formulas used to calculate an electrical bid:

Total Labor Cost = Labor Rate per Hour × Estimated Hours
Total Direct Costs = Material Costs + Equipment Costs + Travel Costs + Permit Fees
Indirect Costs = (Total Direct Costs + Total Labor Cost) × (Markup Percentage/100)
Project Cost = Total Direct Costs + Total Indirect Costs + Total Labor Cost

Example:
Labor Rate per Hour = $50
Estimated Hours = 100 hours
Material Costs = $2,000
Equipment Costs = $500
Travel Costs = $200
Permit Fees = $100
Markup Percentage = 15%

Calculator total labor cost:
Total Labor Cost = $50 × 100 = $5,000

Calculate total direct costs:
Total Direct Costs = $2,000 + $500 + $200 + $100 = $2,800

Calculate total indirect costs:
Total Indirect Costs = ($2,800 + $5,000) × (15/100) = $1,170

Calculate total project cost:
Total Project Cost = $2,800 + $1,170 + $5,000 = $8,970

This example demonstrates how the calculator aggregates various costs and applies a markup to provide a comprehensive project bid.