How Much Does a Performance Bond Cost? (2026 Rates Calculator)
Performance Bond Cost by Bond Amount and Credit Score
The performance bond cost is calculated as a percentage of the
total contract amount. Swiftbonds uses a transparent three-tier rate structure
based on bond size, credit score, and whether you can provide CPA-reviewed
financial statements. The same rate structure applies to public-works
performance bonds, construction performance bonds, contractor bonds, contract
bonds, and combined payment and performance bonds.
| Bond Size & Profile | Credit 650+ | Credit Below 650 |
|---|---|---|
| Under $1,000,000 | 3.0% | 3.6% |
| $1,000,000 – $4,000,000 with CPA-reviewed financials |
2.5% | 3.6% |
| $1,000,000 – $4,000,000 without CPA financials |
3.0% | 3.6% |
| Above $4,000,000 with CPA-reviewed financials — tiered |
2.5% on first $4M 2.0% above $4M |
3.6% |
“Good financials” means CPA-reviewed financial statements for
the past two years (balance sheet, profit & loss, and a current
work-in-progress schedule). These unlock the preferred rate above $1M.
Worked example — $500,000 contract, credit score 700:
Bond size is under $1M and credit is above 650, so the rate is 3.0%.
Premium: $15,000.
Worked example — $500,000 contract, credit score 620:
Credit is below 650, so the sub-650 rate of 3.6% applies regardless of bond size.
Premium: $18,000.
Worked example — $2,500,000 contract, credit score 720, CPA financials provided:
Bond falls in the $1M–$4M preferred tier, so the rate is 2.5%.
Premium: $62,500.
Worked example — $8,000,000 contract, credit score 720, CPA financials provided:
Tiered rate applies — 2.5% on the first $4M ($100,000) plus
2.0% on the next $4M ($80,000) = total premium $180,000
(a blended rate of 2.25%).
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SWIFTBONDS PERFORMANCE BOND COST CALCULATOR
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Self-contained widget. Drop this entire block (including the
Estimate Your Performance Bond Cost
Instant estimate based on bond amount and credit profile. Final rate confirmed after underwriting.
$500,000
$1M
$4M
$10M
Required to unlock preferred rates above $1M. Includes balance sheet, P&L, and work-in-progress schedule.
Estimated Premium
Rate: 3.0% · Standard rate (bond under $1M, credit 650+)
Estimate only. Final premium depends on full underwriting (credit history, contractor experience, project type, and obligee). Most bonds are issued within 24 hours.
What Drives Your Performance Bond Rate?
Four factors determine the rate the surety company quotes:
- Contract size. Larger contracts often get lower percentage rates because surety companies prefer fewer, larger bonds over many small ones.
- Personal and business credit. The principal's FICO score is the single biggest variable. Scores above 700 typically unlock the 1.0%–1.5% tier. Scores below 620 push the rate to 3%+ or require collateral.
- Bonding history and contractor experience. Two or more years of clean bonding history with audited financials moves the rate down. First-time contractors without a CPA-reviewed financial statement pay higher rates.
- Project type and obligee. Federal Miller Act bonds, state DOT bonds, and private commercial bonds have slightly different underwriting standards. Specialty work (asbestos, environmental) can carry a 0.25%–0.50% premium.
How to lower your rate: raise your personal credit above 680
before applying, provide CPA-reviewed financial statements for the last two
years, and submit a clean work-in-progress schedule. Contractors who do all
three typically see rates drop by 50–100 basis points.
Need a bond despite credit issues? See our
bad credit performance bond program — we work with
specialty markets that approve contractors other agencies turn down. Rates
start at 3% and we can typically issue same-day.
Performance Bond Cost FAQ
How much does a performance bond cost?
A performance bond typically costs 1% to 3% of the total contract amount. The rate depends on the contractor's credit score, financial strength, bonding history, and the size of the contract. For a $500,000 contract, expect to pay $5,000–$15,000.
How is the performance bond rate calculated?
The rate is a percentage applied to the contract value. Surety companies underwrite the contractor — not the project — so the rate reflects credit score, audited financials, and prior bonding history. The premium is paid once and covers the bond for the project duration.
How much is a performance bond on a $500,000 contract?
On a $500,000 contract, a performance bond typically costs $5,000 to $15,000. Contractors with credit scores above 680 and audited financials pay closer to $5,000. Contractors with average credit pay $7,500–$10,000. Those with credit issues or no prior bonding may pay $12,000–$15,000.
How much is a performance bond on a $1 million contract?
On a $1,000,000 contract, expect to pay $10,000 to $30,000. Strong contractors with excellent credit and a long bonding track record may pay closer to $8,000–$10,000. At this contract size, surety companies often require CPA-reviewed financial statements and a work-in-progress schedule.
Does my credit score affect the performance bond cost?
Yes — credit score is the single biggest cost factor. Scores above 700 typically secure the 1.0%–1.5% rate tier. Scores between 620 and 679 push the rate to 2.0%–3.0%. Below 620, the rate climbs to 3%–5% and may require collateral. Improving your score before applying is the fastest way to lower your premium.
What's the difference between a performance bond cost and a payment bond cost?
Most surety companies issue payment and performance bonds together as a single "P&P" bond at one combined rate of 1%–3% of the contract amount. They are not priced separately. If you need a standalone payment bond, the rate is similar — see our payment bond page for details.
How much does a construction performance bond cost?
A construction performance bond costs 1% to 3% of the contract amount, identical to performance bonds for other industries. Construction-specific factors that influence the rate include the contractor's experience with similar project types, subcontractor management, and bonded backlog. See our construction bonds guide.
Can I get a performance bond with bad credit, and what does it cost?
Yes — Swiftbonds works with specialty surety markets that approve contractors with credit scores below 620. Bad-credit performance bonds typically cost 3%–5% of the contract amount, and some programs require collateral (cash, irrevocable letter of credit, or a UCC filing). Most bad-credit bonds can still be issued in 24–48 hours.
How fast can I get a performance bond quote?
For standard contracts under $400,000 with a credit-qualified applicant, Swiftbonds can issue a quote in under one hour and a bond the same day. Larger or more complex contracts typically take 24–72 hours. Call (913) 214-8344 or apply online to start.