Work out project overhead percentage instantly with clear inputs, formula shown and shareable results.
Overhead splits into site preliminaries, which are project specific, and an allocated share of head office cost. Expressing the total as a percentage of direct cost gives the mark-up to apply when pricing new work, and profit is then added on the full cost rather than only the direct element.
Overhead percentage
Overhead % = (site overhead + head office overhead) / direct cost x 100
Tender price
Price = (direct cost + overhead) x (1 + profit rate)
Overhead % = (site overhead + head office overhead) / direct cost x 100. Overhead splits into site preliminaries, which are project specific, and an allocated share of head office cost.
No. Eight percent profit on cost is only 7.4 percent margin on price. Confusing the two systematically understates the mark-up needed to hit a margin target.
This calculator takes 4 inputs: Direct cost of works, Site overhead, Head office overhead allocated, Target profit on cost. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.