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Bonding Capacity Estimator.

Estimate the surety bond program your financials could support. Enter your working capital, stockholder equity, and current backlog to see an aggregate and single-job capacity range based on the rules of thumb underwriters commonly apply.

How sureties actually size a bond program.

Underwriters look at the smaller of your working capital and your equity, then apply a multiple that commonly falls between 10x and 20x for an aggregate program, with single job limits typically lower. The multiple you get depends on statement quality, WIP schedule reliability, profit fade history, and job concentration. That is why two contractors with identical balance sheets can receive very different programs.

The fastest ways to increase capacity.

Upgrading from internal statements to CPA reviewed statements is usually worth more than months of retained earnings, because sureties stop discounting your numbers. Beyond that: keep a current, GL-tied WIP schedule, move retainage receivable into its own line, term out short-term debt, and document or subordinate officer loans. We cover the full playbook in How to Increase Your Bonding Capacity.

Disclaimer: This tool provides rough educational estimates based on industry rules of thumb. Actual surety credit depends on underwriter review of complete financial statements, WIP schedules, work history, credit, and indemnity. Results are not a guarantee or offer of bonding. Consult your surety agent and a construction CPA.
Frequently Asked

Bonding capacity questions, answered.

How is bonding capacity calculated?
Sureties generally base capacity on the smaller of working capital (current assets minus current liabilities) and stockholder equity, applying a multiple that commonly ranges from 10x to 20x for the aggregate program. The multiple depends on financial statement quality, WIP schedule reliability, historical profit performance, and experience.
How can a contractor increase bonding capacity?
The fastest levers are upgrading to CPA reviewed or audited financial statements, maintaining an accurate WIP schedule that ties to the general ledger, separating retainage receivable, converting short-term debt to long-term, and subordinating officer loans. Adding retained earnings and profitable job history grows capacity over time.
Do CPA reviewed financial statements increase bond capacity?
Yes, significantly. Sureties heavily discount internal or tax-return-only financials because they cannot rely on them. CPA reviewed statements typically unlock the full underwriting multiple, which for many contractors is the difference between qualifying for a project and losing it.

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