Quote Markup & Margin Target Calculator
Price a client quote to hit a target profit margin: enter your job cost and desired margin to get the quote price, profit and the equivalent markup.
How it works
Loaded cost = cost × (1 + contingency%) · Price = loaded cost ÷ (1 − margin%) · Markup% = (price − loaded cost) ÷ loaded cost
To hit a margin target you divide the cost by (1 − margin), not multiply by (1 + margin) — the latter gives a markup, which always lands below the intended margin. The contingency buffer is added to cost before pricing so that unexpected overruns eat into padding rather than into profit. Showing the equivalent markup lets you sanity-check the quote against a per-cost rule of thumb.
Worked example
A job costs $4,200. A 5% contingency lifts the working cost to $4,410. To keep a 30% margin, quote 4,410 ÷ (1 − 0.30) = $6,300 — a $1,890 profit, which is a 42.9% markup on the loaded cost.
Frequently asked questions
Why not just add 30% to my cost?
Adding 30% to cost is a 30% markup, which is only a 23% margin. To actually keep 30% of the price as profit you must divide the cost by 0.70. Confusing the two is the most common quoting error.
What is a reasonable contingency?
For well-scoped work 5–10% is typical; for uncertain or exploratory jobs 15–20% is safer. The buffer protects your margin from small overruns without inflating the quote.
Does the contingency get returned if unused?
No — it is baked into the fixed quote price. If the job runs clean, the unused buffer simply becomes extra profit, which is the intended cushion.
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Educational estimate, not financial advice.