Contractor Overhead Calculator
Enter your business expenses below to find your exact overhead percentage. Then see how you compare to the industry benchmark for your trade.
Calculate Your Overhead Percentage
Enter annual amounts. Leave blank any that don’t apply.
Annual Overhead Expenses
| Category | Annual | % of Revenue |
|---|
Track This Automatically on Every Job
BuildFolio calculates your real overhead and profit per job — no spreadsheets. See where your money actually goes.
Start Free — $39/mo When Ready2026 Overhead Benchmarks by Trade
Use these benchmarks to see if your overhead percentage is healthy. Numbers based on industry surveys of 1,000+ contractors.
| Trade | Typical Overhead | Key Cost Drivers |
|---|---|---|
| Roofing | 30–45% | Workers comp, equipment, safety |
| HVAC | 35–50% | Vehicles, parts inventory, licensing |
| Plumbing | 30–45% | Vehicles, equipment, licensing |
| Electrical | 28–42% | Licensing, continuing ed, insurance |
| Remodeling / GC | 35–50% | Office staff, showroom, design |
| Painting | 25–38% | Lower equipment costs, marketing |
| Landscaping | 30–45% | Equipment, seasonal labor, fuel |
| Solar | 35–50% | Permitting, design software, licensing |
Overhead by Company Size
| Company Size | Annual Revenue | Typical Overhead |
|---|---|---|
| Solo operator | Under $250K | 25–35% |
| Small crew (2-5) | $250K–$750K | 30–40% |
| Mid-size (6-20) | $750K–$2M | 35–45% |
| Established (20-50) | $2M–$10M | 40–50% |
| Large (50+) | $10M+ | 45–54% |
How to Use Your Overhead Percentage in Pricing
Once you know your overhead rate, apply it to every job estimate:
- Calculate direct costs — materials + labor for the specific job
- Add your overhead allocation — direct costs × your overhead %
- Add your profit margin — typically 10–20% on top
Example: $10,000 direct costs + $3,500 overhead (35%) + $2,700 profit (20%) = $16,200 selling price
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- Hourly Rate Calculator — find your true hourly cost
- Contractor Overhead Guide — full breakdown and strategies
FAQ
What is a good overhead percentage for a contractor?
Most successful contractors run 25–45% overhead. Solo operators typically have 25–35%, while companies with 6+ employees run 35–50%. The key is knowing your exact number so you can price jobs profitably. Use the calculator above to find yours.
How do I calculate my contractor overhead rate?
Add up all annual business expenses not tied to specific jobs (insurance, vehicles, rent, admin staff, marketing, equipment). Divide by your total annual revenue and multiply by 100. Example: $180,000 overhead ÷ $600,000 revenue = 30% overhead rate.
Should I include my salary in overhead?
Yes. Time you spend on admin, estimating, billing, and marketing has value. Many contractors exclude owner salary, making overhead look artificially low and leading to underpriced jobs. If you spend 15+ hours per week on non-billable work, include a reasonable salary for that time.
What is the difference between overhead and profit?
Overhead covers business costs not tied to specific jobs (insurance, rent, vehicles). Profit is what remains after paying both direct job costs AND overhead. Many contractors mistake markup for profit when much of it actually covers overhead.
How often should I recalculate my overhead?
Review quarterly, recalculate annually at minimum. Insurance renewals, vehicle purchases, and staff changes all affect your rate. Software like BuildFolio calculates this automatically on every job.
Stop Guessing Your Margins
BuildFolio tracks your actual overhead and profit on every job — unlike Jobber or ServiceTitan. Start free, upgrade to $39/mo when ready.