EveryCalc

Finance category

Mortgage, loan, investing, tax, and money calculators.

Browse finance

Bonding Capacity Calculator

Contractors bond against working capital. This calculator sizes available capacity.

$
$
$

Available capacity

$15,600,000

Aggregate capacity

$33,600,000

Single job max

$30,000,000

How the math works

Aggregate = min(working capital × 15, net worth × 8). Available = aggregate − backlog.

Monitor aggregate capacity vs backlog monthly. Bidding above capacity triggers surety refusals on final approval — better to track capacity upfront than lose job approvals mid-bid.

How to Use

  1. Enter working capital.
  2. Enter net worth.
  3. Enter backlog already bonded.
  4. Enter max single job multiplier.
  5. Read available capacity.

Frequently Asked Questions

Capacity formulas?

Aggregate capacity = 10-20x working capital, or 5-10x net worth. Single-project cap = 10-15x working capital. Premium contractors get 20-30x; newer or smaller 5-10x.

Expanding capacity?

Grow working capital (retain earnings, limit distributions). Improve net worth (asset accumulation). Reduce backlog turnover (complete projects faster). Each takes 12-36 months of discipline.

Capacity urgency?

Bonding constraints limit bid opportunities. Capacity-constrained contractors lose $500k+/year in foregone work. Worth investing in balance sheet to unlock larger jobs.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

Related Calculators

More Finance Calculators

Browse all finance

Keep exploring

Next steps in Finance

View finance hub →