Contractor Fully Loaded Labor Burden & Markup Bid Formula
Calculate true direct labor burden, overhead allocation, and accurate target gross margin bids for general contractors and trade subcontractors in Excel.
=LET( burdenedLabor, ([@LaborHours] * [@BaseWage]) * (1 + Setup!PayrollBurdenRate), primeCost, burdenedLabor + [@MaterialsCost] + [@SubcontractorsCost], loadedCost, primeCost * (1 + Setup!IndirectOverheadRate), quotedBid, loadedCost / (1 - [@TargetGrossMarginPct]), quotedBid )
Calculates total direct labor cost factoring FICA, FUTA, SUTA, and workers comp.
Contractor Job Costing & Estimates
Skip writing this formula by hand — download the pre-built Contractor Job Costing & Estimates workbook with live structured tables, KPI dashboard, and sample data.
The Problem with Standard Excel Approaches
Contractors routinely underbid jobs by adding a simple percentage markup to hourly wages, neglecting employer payroll taxes, workers comp insurance, and indirect shop overhead.
How Modern Dynamic Arrays Execute This Formula
Multiplies base wage by full employment burden multiplier (typically 1.25 to 1.35x).
Sums all direct material takeoff and certified subcontractor quotes.
Applies company-wide overhead allocation percentage from central Setup tab.
Divides by (1 - Margin%) so the quoted price guarantees exact gross profit dollars.
Common Excel Errors & How to Fix Them
Solution: Always divide Cost by (1 - 0.30) to achieve a true 30% gross margin.
Solution: Use persistent workbook named ranges like Setup!PayrollBurdenRate.