Margin is not markup
A 35% margin requires a higher quote than adding a 35% markup to cost. This tool prices from the margin you want to retain.
Turn labor, materials and overhead into a customer quote that protects your target profit margin.
| Suggested line item | Internal cost | Customer price |
|---|---|---|
| Quoted subtotal | $6,840 | |
| Expected discount | -$0 | |
| Subtotal after discount | $6,840 | |
| Sales tax | $0 | |
| Customer total | $6,840 | |
| Scenario | Customer subtotal | Estimated cost | Profit | Profit margin |
|---|
A 35% margin requires a higher quote than adding a 35% markup to cost. This tool prices from the margin you want to retain.
Include wages, payroll burden and other direct labor costs. Your customer-facing billing rate is an output, not an input.
The result is a planning estimate. Confirm scope, taxes, contract terms and any industry-specific requirements before issuing a quote.