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IT support Target Margin Quote

Find a quote that retains the chosen margin after revenue-based commission.

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IT support / support ticket economics

IT support Support ticket Quote

Your result714.285714

Delivery cost 400; allocated overhead 100; commission 35.7143; retained contribution after assigned costs 178.5714.

657.14160685.71180714.29200742.86220771.43240Technician time cost
Other inputs stay fixed. Point labels show the calculated result; this is a scenario comparison.

Quote = (itemised delivery costs + allocated overhead) ÷ (1 − margin − commission)

What you’ll need

Gather project time logs, licence invoices and retainer scopes. Include technician time, software, and escalation work. The starting figures are examples. Replace them with your own records.

Formula and worked example

Quote = (itemised delivery costs + allocated overhead) ÷ (1 − margin − commission)

Example figures
InputExample
Technician time cost200
Software cost150
Escalation work cost50
Fixed overhead allocated to this support ticket100
Target margin after commission25 %
Selling-price commission5 %
Calculated result714.2857

Delivery cost 400; allocated overhead 100; commission 35.7143; retained contribution after assigned costs 178.5714.

Choose reliable inputs

Include software licences, delivery time, revisions and ongoing support when costing a project. For this it support calculation, use project time logs, licence invoices and retainer scopes and a consistent definition of one support ticket.

  • Technician time: include the portion belonging to this support ticket or reporting period, and record where the value came from.
  • Software: include the portion belonging to this support ticket or reporting period, and record where the value came from.
  • Escalation work: include the portion belonging to this support ticket 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%.

Compare a different assumption

What if this input changes?

If technician time 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.

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