In this example, increasing customer quote from 3,000 to 3,300 changes the result from 25 % to 31.8182 %. All other inputs stay the same.
Try this with your own numbersFormula and worked example
Margin = (quote − subcontract charge − coordination cost) / quote × 100
| Input | Example |
|---|---|
| Customer quote | 3,000 |
| Subcontract charge | 2,000 |
| Internal coordination cost | 250 |
| Calculated result | 25 % |
Choose reliable inputs
Plan materials, travel and crew time before committing to a price. For this cabinet installation calculation, use a completed job sheet, supplier quotes and a crew schedule and a consistent definition of one installation.
- Cabinetry: include the portion belonging to this installation or reporting period, and record where the value came from.
- Fitting labour: include the portion belonging to this installation or reporting period, and record where the value came from.
- Site protection: include the portion belonging to this installation or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
Is the subcontract invoice my total delivery cost?
Include coordination, inspections, customer service, and expected rework when those costs are yours.
Only entered costs are counted; warranty and rework costs may require an allowance.
What if this input changes?
If customer quote rises by 10%, this example changes by 6.8182 %. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.