Bonding Capacity Calculator
How Much Bonding Can You Get?
Calculate your single project limit and aggregate bonding capacity based on your financials. The 10x working capital formula explained.
Bonding Capacity Calculator
Bonding Capacity Formulas Explained
10x Working Capital Rule
Your largest individual project is limited to approximately 10 times your working capital. $100K WC = $1M single project.
Aggregate Program
Total bonded work capacity is 15-20x working capital. This is your combined limit for all active projects.
The 10% Net Worth Rule
Your net worth must equal at least 10% of your total bonded work.
Example: To bond $5,000,000 in aggregate work, you need at least $500,000 in net worth. This rule often becomes the limiting factor for growing contractors before working capital does.
How to Increase Your Bonding Capacity
Improve Working Capital
Reduce current liabilities, collect receivables faster, retain earnings in the business. Every $10,000 in working capital adds ~$100,000 to your single project limit.
Obtain a Bank Line of Credit
An available line of credit (even if unused) increases your effective working capital for bonding purposes.
Use the SBA Bond Guarantee Program
The SBA guarantees bonds up to $10 million for contractors who can't get conventional bonding, allowing you to exceed typical capacity limits.
Build Operating History
Sureties reward track record. 3+ years of profitable operations with completed bonded projects increases capacity multipliers.
Popular Bond Types
Explore our most requested surety bonds
Bonding Capacity Calculator FAQs
How is bonding capacity calculated?
Bonding capacity is calculated using the 10x working capital formula for single projects and 15-20x for aggregate programs. The 10% rule also requires net worth of at least 10% of total bonded work. Our bonding capacity calculator uses these industry-standard formulas.
What is working capital for bonding?
Working capital for bonding is Current Assets minus Current Liabilities from your balance sheet. This includes cash, receivables, and inventory minus payables, short-term debt, and accrued expenses. A CPA-prepared financial statement gives the most accurate working capital figure.
Can I exceed my calculated bonding capacity?
Yes, through the SBA Bond Guarantee Program, collateral, or special surety programs for growing contractors. Personal indemnity from owners with strong personal financial statements can also extend capacity. Contact us to explore options beyond standard bonding capacity limits.
Get Pre-Qualified for Your Bonding Program
Find out exactly how much bonding you can get. Free consultation with a licensed surety professional.
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