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General Contracting

Contractor Overhead Calculator

Calculate your business overhead percentage and determine proper markup rates.

Business & RevenueAnnual
$/yr
hrs

Only hours you can actually charge — not estimates, travel, paperwork.

$/hr
%
Fixed OverheadMonthly + annual
$/mo
$/mo
$/mo
$/mo
$/yr
$/yr
$/yr
$/yr
Variable OverheadMonthly (+ annual)
$/mo
$/mo
$/mo
$/mo
$/mo
$/mo
$/mo
$/yr
Hidden OverheadAnnual · the profit killers
$/yr
$/yr
$/yr
$/yr
$/yr
Your analysisLIVE
Sample data

Example numbers for a 1–2 person shop. Edit any field to make it yours — it saves on this device.

Minimum bill rate
$158/hr
covers labor + overhead + 20% profit
Annual overhead
$165,400
Overhead %
69%
Break-even / hr
$92
Daily overhead
$636
Fixed (annualized)$46,200
Variable (annualized)$26,700
Hidden (annual)$92,500
Min rate — no profit$127/hr
Typical, fully-loaded
Normal for HVAC, plumbing & electrical with real insurance, vehicle, and equipment costs.
overhead% = annual overhead ÷ labor revenue × 100
overhead/hr = annual overhead ÷ billable hours
min rate = labor rate × (1 + overhead%)
Field notes

Why most contractors get overhead wrong.

01

Obvious costs only

Most count rent, insurance, maybe a truck payment. Overhead is every business expense that doesn't directly touch a specific job.
02

"Ballpark" guessing

"I think my overhead's about 30%." Guessing it leads to systematic underpricing on every single job.
03

Borrowed averages

"Everyone says 35%." Your overhead might be 15% or 60% depending on your business model, trade, and market.
04

Forgetting hidden costs

The margin killers: owner salary, downtime, collection time, equipment maintenance, and professional development.
Benchmarks · overhead by trade
HVAC
56%
typical overhead
Recovery equipment, refrigerant stock, seasonal cash flow, heavy vehicle maintenance.
Plumbing
61%
typical overhead
Truck-stock inventory, cameras & augers, water-damage insurance, emergency response.
Electrical
57%
typical overhead
Continuing ed, code books & software, test equipment, higher liability insurance.
General
64%
typical overhead
PM time, multiple licenses, bonding & insurance, subcontractor coordination.
Apply it

How to use your overhead percentage.

1. Price jobs correctly

Job Price = Materials + Labor + (Labor × Overhead%) + Profit

2. Set minimum hourly rates

Min Rate = (Hourly Wage + Burden) × (1 + Overhead%)

3. Evaluate job profitability

  • Did this job cover its overhead share?
  • What was the actual profit margin?
  • Should you raise prices for similar work?

4. Make business decisions

  • Can you afford new equipment?
  • Should you hire additional help?
  • Is your pricing competitive but profitable?
Gut check

Overhead warning signs.

Red flags you're underpricing

!Working 60+ hours but barely making ends meet
!Can't afford equipment upgrades when needed
!Constantly stressed about cash flow
!Always choosing the cheapest materials
!Avoiding jobs because they “cost too much”
!Can't take vacation without financial stress

Healthy overhead indicators

+Consistent profitability across job types
+Ability to reinvest in equipment and training
+Comfortable owner salary and benefits
+Cash reserves for slow periods
+Can compete on value instead of price

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