Janitorial Contract Bid Price Calculator
Calculate a competitive and profitable bid price for janitorial contracts based on labor costs, supplies, overhead, and desired profit margin.
Formulas Used
1. Hours per Visit (per worker):
Hours per Visit = Square Footage ÷ Cleaning Rate (sq ft/hr)
2. Total Monthly Labor Hours:
Total Labor Hours = Hours per Visit × Number of Workers × Visits per Month
3. Monthly Labor Cost:
Labor Cost = Total Labor Hours × Hourly Labor Cost
4. Monthly Overhead Cost:
Overhead Cost = Labor Cost × (Overhead Rate ÷ 100)
5. Total Direct Costs:
Direct Costs = Labor Cost + Supplies Cost + Overhead Cost
6. Monthly Bid Price (Margin-Based):
Bid Price = Direct Costs ÷ (1 − Profit Margin ÷ 100)
This ensures the profit % is a true margin on the selling price, not just a markup on cost.
7. Annual Bid Price:
Annual Bid = Monthly Bid Price × 12
Assumptions & References
- The cleaning rate (sq ft per hour) varies by facility type: offices ~3,000–4,000 sq ft/hr, medical facilities ~1,500–2,500 sq ft/hr, industrial ~4,000–5,000 sq ft/hr (ISSA Cleaning Industry standards).
- Hourly labor cost should include gross wages, payroll taxes (FICA ~7.65%), workers’ compensation insurance, and any benefits — typically 25–35% above base wage.
- Overhead covers insurance (general liability, bonding), vehicle costs, management time, uniforms, and administrative expenses — typically 15–30% of labor.
- Profit margin for janitorial contracts typically ranges from 10–20% for competitive markets (BSCAI — Building Service Contractors Association International).
- The margin formula Bid = Cost ÷ (1 − margin) is the industry-standard method to ensure the desired profit percentage is achieved on the final price, not just added as a markup.
- Supplies typically run $0.01–$0.05 per sq ft per month depending on facility type and cleaning frequency.
- This calculator provides a monthly flat-rate bid. Adjust for one-time setup costs or special services (floor stripping, carpet cleaning) as needed.
- References: ISSA (International Sanitary Supply Association) production rate standards; BSCAI industry benchmarks; U.S. Bureau of Labor Statistics for janitorial wage data.