How to Use This Tool
Value discovery, writing, review and outside expenses before bidding. Estimate proposal preparation cost, cost per win and required contribution using team hours, loaded rates and expected win probability.
The decision this tool supports
Unbilled proposal effort disappears from project economics unless repeated losses are allocated across the bids that actually convert. This page keeps the decision bounded to cost per expected win and the supporting outputs shown beside it. Proposal Preparation Cost does not import an account, infer a market rate, or silently substitute an industry average.
Inputs and units
The Proposal Preparation Cost calculation uses Team preparation hours, Loaded hourly cost, Outside expenses, Expected win probability, Target recovery multiple. Keep all money values in one currency and all time, distance, mass, energy or volume entries in the unit printed beside the field. Mixing Proposal Preparation Cost scopes can produce a plausible number with the wrong meaning.
- Team preparation hours is entered in hours.
- Loaded hourly cost is entered in currency/hour.
- Outside expenses is entered in currency.
- Expected win probability is entered in %.
- Target recovery multiple is entered in times.
Formula and worked check
Proposal cost = team hours × loaded hourly cost + outside expenses; cost per expected win = proposal cost ÷ win probability. Fourteen hours at $65 plus $120 costs $1,030 per proposal; at 35% win probability, expected acquisition cost is $2,942.86. The Proposal Preparation Cost default is an executable known-answer case, not a benchmark or recommendation. Change one input and verify that the direction of cost per expected win still matches the stated relationship.
How to interpret the result
Cost per expected win is a portfolio expectation, not the cost of one specific successful proposal. The additional Proposal Preparation Cost outputs expose the denominator, comparison, capacity or reverse value needed to audit the primary result instead of presenting one unexplained number.
Assumptions
- Loaded cost includes the selected labor overhead.
- Win probability reflects comparable opportunities.
- Each proposal is treated as an independent opportunity.
Save the Proposal Preparation Cost input values and date with any material decision. A later Proposal Preparation Cost rerun is reproducible only when the same assumptions and units are available.
Limitations and safety boundary
Win rates can vary by client and deal stage; the model excludes opportunity cost, sales overhead and post-award negotiation. Proposal Preparation Cost is an estimate and cannot replace a contract, local code, licensed professional, calibrated measurement, lender statement or platform report where one governs the decision.
Source and privacy
The Proposal Preparation Cost definition or rule was checked against U.S. Small Business Administration — Manage your finances on 2026-08-26. Recheck U.S. Small Business Administration — Manage your finances when a specification or policy behind Proposal Preparation Cost can change. Proposal Preparation Cost arithmetic runs in this browser tab; ecech does not receive the values through a calculation API.
Sources & assumptions
Tool Spec v2 · verified 2026-08-26. Platform rules and fees can change; the editable inputs remain authoritative for your account.
Official references
- U.S. Small Business Administration — Manage your finances (checked 2026-08-26)
Model assumptions
- Loaded cost includes the selected labor overhead.
- Win probability reflects comparable opportunities.
- Each proposal is treated as an independent opportunity.
- Win rates can vary by client and deal stage; the model excludes opportunity cost, sales overhead and post-award negotiation.
