Bid Calculator

The calculator multiplies your labor rate per hour by your estimated hours to complete the job to produce your total labor cost. A $50 per hour rate on a 100-hour job produces a $5,000 labor cost. Changing either input updates the labor cost instantly and flows through to the total project cost output. Entering an accurate hourly rate that includes wages, taxes, benefits, and overhead, along with a realistic hours estimate, is the most important step in producing a bid that reflects what the job actually costs to deliver.

Direct costs are the expenses tied specifically to the job: material costs, equipment costs, travel costs, and permit fees. These are entered individually and summed by the calculator to produce the total direct cost figure. Indirect costs are calculated by applying your markup percentage to the combined total of direct costs and labor costs. They represent overhead, profit, and business costs that are not tied to a single line item but still need to be recovered through the bid. The final project cost is the sum of all three: total labor cost, total direct costs, and total indirect costs.

The markup percentage is applied to the combined total of your labor cost and direct costs, not just the direct costs alone. A 15% markup on a combined cost of $7,800 produces $1,170 in indirect costs. The same 15% on a combined cost of $15,000 produces $2,250. This means a higher labor cost on a longer or more complex job produces a proportionally larger indirect cost figure even at the same markup rate. Understanding this relationship helps you set a markup percentage that consistently covers your overhead and profit target across jobs of different sizes and complexity levels.

Permit fees vary significantly by jurisdiction, project type, and scope of work. Residential panel replacements, service upgrades, new construction wiring, and commercial tenant improvements all carry different permit requirements and associated fees. Always confirm current fee schedules with your local AHJ before finalizing any bid that involves permitted work. Enter permit fees as a direct cost line in every applicable bid rather than absorbing them into your markup. Customers expect permit fees to appear as a transparent line item, and including them explicitly protects you if fees change between bid acceptance and job start.

Material costs cover all the supplies and components consumed during the job, including wire, conduit, outlets, switches, breakers, connectors, and any other electrical components that become part of the finished installation. Equipment costs cover the tools and machinery used to complete the job that are not consumed or left behind, such as lifts, specialty diagnostic tools, or rental equipment. Separating the two gives you a clearer picture of your cost structure and makes it easier to adjust bids when equipment requirements change between similar jobs of the same material scope.

Run the calculator for each job using its specific inputs and review the total project cost alongside the labor cost and indirect cost breakdown. Comparing these figures across similar job types, such as panel upgrades, service calls, new construction installs, or commercial tenant work, helps you identify whether your labor rate and markup are producing consistent, competitive bids or whether certain job categories are coming in higher than the market will support. If a specific job type consistently requires a project cost above your target price range, the calculator helps you identify which cost input needs to be addressed before you can bid that work profitably.

The calculator produces four distinct figures: total labor cost, total direct costs, total indirect costs, and total project cost. Presenting these as separate line items in your customer quote gives the customer a clear breakdown of where the project cost comes from without exposing your internal markup percentage. Labor and materials are typically the most customer-facing line items. Indirect costs can be presented as overhead and profit or rolled into a single project management fee depending on your quoting style. A transparent, itemized quote built from real numbers closes more confidently than a single lump-sum figure with no supporting detail.