FREE TOOL — O&P / '10 AND 10'
Roofing Overhead & Profit (O&P) Calculator
Free, instant, no signup. Adjust the inputs and the numbers update live. Every result is a planning estimate.
The 'P' in '10 and 10' is not your net profit — it is a line item added before your real overhead and real costs come out. Two identical RCVs can net completely different money depending on how lean you buy and how heavy you carry.
The math, in plain terms.
Overhead and profit — 'O&P,' most often quoted as '10 and 10' — is a markup added on top of the trade line-item subtotal on an insurance estimate. Ten percent overhead plus ten percent profit equals a 20% add. Example: an $18,000 line-item subtotal gets $3,600 in O&P, bringing total revenue (the replacement cost value the carrier approves) to $21,600. This tool keeps the overhead and profit percentages separate and adjustable so you can match whatever the estimate actually specifies.
Then it checks whether that estimate is as healthy as it reads, because the O&P percentages are allowances, not your books. Your true cost to complete the work is often below the line-item subtotal if you buy and build efficiently — enter it as a percentage of subtotal. Your real company overhead (office, trucks, insurance, admin, sales) is usually a larger share of revenue than the fixed 10% 'O' suggests. Example: at 82% true cost that is $14,760 to complete, and at 18% real overhead on $21,600 revenue that is $3,888 of company burden. Net profit is $21,600 minus $14,760 minus $3,888, or $2,952 — a true net margin of 13.7%, not the 10% the 'P' implied.
For a storm operator this is the difference between a job that funds the business and one that just keeps trucks moving. If your true overhead runs higher than the O&P allowance covers, the job is thinner than the RCV suggests, and volume at that margin can quietly starve cash flow. Model true cost and true overhead before you sign the contract or the work authorization so you know the real number, not the estimate's optimistic one.
Questions, answered.
What does '10 and 10' mean in roofing?
It refers to 10% overhead and 10% profit added to the sum of trade line-item costs on an insurance estimate — a combined 20% markup. It is the most commonly cited O&P figure, but the actual percentages an estimate carries can differ, which is why both are adjustable inputs here rather than fixed at 10.
Do insurance carriers always pay overhead and profit?
Not automatically. As a general matter, many carriers apply O&P when a job is complex enough to require a general contractor to coordinate multiple trades (a rule of thumb often cited as three or more trades), but policies, states, and adjusters vary. This is general information, not a coverage determination — read the policy and the estimate, and take up disputes through the proper claims channel.
Why is my true net profit lower than the 10% profit line?
Because the '10' for overhead is a fixed allowance, not your actual overhead. If your real company overhead consumes more of revenue than that allowance, it eats into the profit line. This tool separates the estimate's O&P from your real cost and real overhead so you see the net that actually lands, not the net the estimate assumes.
Is this insurance, tax, or financial advice?
No — this is a planning estimate only, and it is not tax, financial, legal, or insurance-claims advice. O&P eligibility, supplement rules, and accounting treatment vary by carrier, policy, and jurisdiction. Confirm figures with your accountant and handle claim and coverage questions through the carrier and, where appropriate, a licensed professional.
From spreadsheet to system.
Testing every insurance estimate's O&P against your real cost and true overhead before you sign is the margin check The Roofing OS runs automatically on each storm job.