Margin on a client quote before sending. The Quote / Proposal Margin Calculator takes quoted price, labour cost, materials and subcontractors, other direct costs, target margin and returns margin on the quote plus profit on the quote, quote needed for the target margin, reading. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Pricing and sales metrics decide how much of the value you create you actually keep. Test price changes against margin, not volume alone, and measure the pipeline consistently so forecasts can be trusted. Use the worked example below to check the maths against your own figures.
How the Quote / Proposal Margin Calculator works
Check every proposal against its margin before it goes out. The quote-needed line shows the price that hits your target; if the client will not pay it, reduce scope rather than margin.
Worked example
With the example values (quoted price of $20,000, labour cost of $9,000, materials and subcontractors of $4,000, other direct costs of $1,500, target margin of 30%), the margin on the quote is 27.50%; profit on the quote $5,500.00, quote needed for the target margin $20,714.29, reading Below target: raise the price or cut scope. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is margin on the quote calculated?
margin = (quote − costs) ÷ quote; quote for target = costs ÷ (1 − target margin).
Which figures do I need?
Quoted price, labour cost, materials and subcontractors, other direct costs, target margin. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Should I test a price change before rolling it out?
Yes. Model the margin impact here first, then test on a segment or product line and measure volume and margin before applying it everywhere.
