Have two proposals and need to determine which offers a better deal financially. Example A: One gives a flat-rate pricing with a 4.0% every January 1st. Example B: has a $12 per square foot covering on all labor and materials. It has an increase of 3.5% every January 1st.

Can you let me know if this is the correct formula to use for determining the best proposal?

Use the fixed cost or square footage * the increase to see the annual remodeling total

Example B: 30,000*3.5% = 1,050

Example A: 1,470*4.0% = 58.80

So going with example A would be cheaper for the 1st property if the formula is correct.