Consulting firm Engagement Quote
Delivery cost 400; allocated overhead 100; commission 35.7143; retained contribution after assigned costs 178.5714.
Quote = (itemised delivery costs + allocated overhead) ÷ (1 − margin − commission)
Gather time sheets, engagement scopes and invoice ageing. Include delivery hours, preparation, and travel. The starting figures are examples. Replace them with your own records.
Formula and worked example
Quote = (itemised delivery costs + allocated overhead) ÷ (1 − margin − commission)
| Input | Example |
|---|---|
| Delivery hours cost | 200 |
| Preparation cost | 150 |
| Travel cost | 50 |
| Fixed overhead allocated to this engagement | 100 |
| Target margin after commission | 25 % |
| Selling-price commission | 5 % |
| Calculated result | 714.2857 |
Delivery cost 400; allocated overhead 100; commission 35.7143; retained contribution after assigned costs 178.5714.
Choose reliable inputs
Account for delivery time, review work and when you expect to be paid for each engagement. For this consulting firm calculation, use time sheets, engagement scopes and invoice ageing and a consistent definition of one engagement.
- Delivery hours: include the portion belonging to this engagement or reporting period, and record where the value came from.
- Preparation: include the portion belonging to this engagement or reporting period, and record where the value came from.
- Travel: include the portion belonging to this engagement 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.
How should commission change my quote?
Adding a commission percentage to cost does not preserve the target margin. Commission is based on the selling price.
Allocate overhead once; target margin and commission together must be below 100%.
What if this input changes?
If delivery hours cost rises by 10%, this example changes by 28.5714 . 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.