Estimating Sales Tax and Interest

Sales Tax

The BidMagic estimating software program calculates separate Sales Tax percentages for labor, material and subcontractor costs.

HINT: If you lock the labor or subcontractor percentages, they will use the same number as the material sales tax.

Sales tax can be figured by either of two methods. If you pay sales tax directly on the items you purchase, click the Hard Costs Only button. If you charge sales tax to the client on top of your contract amount, click the All Costs button.

NOTE: If you click All Costs, sales tax will be figured on top of all costs except for Broker 's Commission.

The Canadian Goods & Services Tax, Colorado's Gross Receipts Tax, and similar value-added taxes should be included with sales tax. If they are in addition to a sales tax, add the two percentages, and enter the sum into the sales tax fields.

NOTE: If you prefer not to itemize Sales Tax on materials, enter zero for all sales tax rates, and include sales tax as a part of the material unit prices instead.

Interest Costs

BidMagic calculates the cost of borrowing money for construction, land, or other costs.

Enter the average amount of the loan.

• If borrowing a fixed amount of money for a fixed period of time, put in that amount.
• If borrowing on an installment loan (with a balance that starts at its full amount and gradually declines to zero) or a construction loan (with a balance that starts at zero and gradually increases to its full amount), put in one-half of the full amount of the loan.
• If borrowing on a line of credit, put in the average balance you will maintain.

Also enter the annual percentage rate on the loan and the period of time over which you'll be borrowing, and the total interest cost will be calculated for you.