What does it mean?
Overheads are business or project support costs that must be recovered through pricing; profit is the amount remaining after the relevant costs. Their treatment varies between estimates. Some site overheads may be priced in preliminaries, while company overheads are spread across turnover. Consistent allocation matters because adding percentages to an incomplete or duplicated cost base can distort the result.
In practice
If the relevant cost base is 1,000 and a 20% markup is selected, the selling price is 1,200. Whether the 200 is profit depends on which overheads have already been included in the cost base.
Keep in mind
For a useful comparison, record the currency, pricing date, scope and exclusions alongside the amount. Separate measured quantities from unit prices so you can identify whether a change comes from design or pricing. Use project-specific quotations where available, and distinguish an illustrative allowance from a confirmed cost. The calculators show arithmetic relationships; they do not supply current market rates, tax advice or a complete project budget.