Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Estimated aggregate program capacity
$12,600,000
Estimated single-job limit
$8,400,000
Working capital
$700,000
Working capital as % of net worth
78%
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How to use this
- 1Enter current assets ($).
- 2Enter current liabilities ($).
- 3Enter net worth ($).
- 4Enter single-job multiplier.
- 5Enter aggregate multiplier.
- 6Read your estimated aggregate program capacity on the right — it updates as you type.
- 7Hit Share to keep the scenario or send it to someone.
About this calculator
Sureties size bonding capacity primarily off working capital (current assets minus current liabilities) and net worth, applying a multiplier that reflects your track record, financial statement quality, and industry norms. A common rule of thumb is single-job capacity of roughly 10-15x working capital and aggregate program capacity of 15-20x working capital, though quality sureties will flex these multipliers up for contractors with strong CPA-reviewed or audited financials, low claims history, and experienced management, and flex them down for contractors with weak financial reporting or thin equity. This calculator applies conservative default multipliers to your working capital and net worth to give you a ballpark bonding capacity range before you sit down with your surety agent, so you know roughly what size single job and total backlog you can chase before you go shopping for a program increase.
Worked example
Using the values the calculator loads with:
Inputs
- Current assets: 1200000 $
- Current liabilities: 500000 $
- Net worth: 900000 $
- Single-job multiplier: 12
- Aggregate multiplier: 18
Results
- Estimated aggregate program capacity: $12,600,000.00
- Estimated single-job limit: $8,400,000.00
- Working capital: $700,000.00
- Working capital as % of net worth: 78%
What each field means
Inputs
- Current assets ($)
- The current assets used in the calculation, measured in $. Starts at 1200000 $ so you have a working example on load.
- Current liabilities ($)
- The current liabilities used in the calculation, measured in $. Starts at 500000 $ so you have a working example on load.
- Net worth ($)
- The net worth used in the calculation, measured in $. Starts at 900000 $ so you have a working example on load.
- Single-job multiplier
- The single-job multiplier used in the calculation. Starts at 12 so you have a working example on load. Accepted range: 5–20.
- Aggregate multiplier
- The aggregate multiplier used in the calculation. Starts at 18 so you have a working example on load. Accepted range: 5–30.
Results
- Estimated aggregate program capacity
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Estimated single-job limit
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Working capital
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Working capital as % of net worth
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why do sureties multiply working capital rather than revenue?
Revenue tells you how much work you're doing, not how much cash cushion you have if a job goes sideways with cost overruns or slow-paying owners. Working capital is the buffer that absorbs a bad job without the surety having to step in and finish the contract, which is why it's the primary sizing metric even for contractors with strong top-line revenue.
What multiplier should I actually expect from my surety?
New or thinly capitalized contractors often see single-job multipliers closer to 8-10x and aggregate around 10-15x; established contractors with 5+ years of profitable audited statements and clean claims history can see 15-20x single and 20x+ aggregate. The multiplier is a relationship number, not a formula — your surety agent negotiates it based on the full underwriting file, not just the balance sheet.
Does backlog eat into my bonding capacity even before a job is bonded?
Yes — aggregate capacity is your total outstanding bonded work, not just new bids. If you already have $8M in bonded backlog and your aggregate limit is $12M, you only have $4M of headroom for new bonded work regardless of how strong your balance sheet looks on paper today.
How fast can bonding capacity change year to year?
It moves with your financial statements, typically reassessed annually at renewal. A profitable year that grows retained earnings and working capital can meaningfully increase capacity; a loss year, a large uncollected receivable, or a claim against your bond can shrink it sharply, sometimes forcing a contractor to turn down work mid-year.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
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Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Bonding Capacity Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/bonding-capacity
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/bonding-capacity" target="_blank" rel="noopener">Bonding Capacity Calculator — RevenueLab</a> (2026).</p>
Source: [Bonding Capacity Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/bonding-capacity) (2026).