Cost plus percentage stands for a form of a contract, for example for construction work. According to such a contact, a contractor is paid for the costs needed to perform the work plus a percentage fee — 10 percent, for example. The cost-plus-percentage contact implies that higher costs lead to higher profits for a contractor and hence it is much less desirable for the purchaser than, for example, the cost plus one lump sum. Use a calculator to compute the cost plus 10 percent value.

## Step 1

Look up a contract to find out the estimated cost for a work. For example, the cost is $12,567.50.

## Step 2

Multiply the cost by 10 and then divide by 100 to compute the 10-percent value. In this example, it is ($12,567.50 x 10) / 100 = $1,256.75.

## Step 3

Add the value from Step 2 to the cost to calculate the cost-plus-10-percent value. In this example, $12,567.50 + $1,256.75 = $13,824.25.