Quote Profit Margin Calculator
This quote profit margin calculator shows how much gross profit is in a quote, compares it with your target margin, and shows what happens if costs rise or the customer asks for a discount.
Setup
Set the currency and tax. Changing currency updates the display only — it does not convert exchange rates.
Quote cost & selling price
Use the costs directly connected to completing this job. Your internal labour rate should already recover the appropriate share of business overhead.
Target gross margin
Leave blank if you just want the current figures. Enter a target and the calculator works out the price you'd need to hit it. There is no single correct margin — it depends on the business, job type and risk.
Discount scenario
A discount comes out of the selling price, not the cost — so it usually comes straight off gross profit.
Cost increase scenario
Test the quote before the job does — supplier rises, extra labour time or a revised subcontractor price.
Break-even & discount headroom
This is an internal decision tool. It is not customer-facing discount guidance.
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Leave an honest Google reviewReviews are optional. Please only review based on your genuine experience.A profitable-looking quote can still be tight
A quote may be higher than the obvious material and labour cost and still leave less profit than expected.
Tax may have been treated as income. A discount may have been added without recalculating the margin. Supplier prices may have moved. Labour may take longer than the first allowance.
This calculator separates the job cost, selling price, tax, gross profit and gross margin so the result is clear before the quote is sent.
See more than a percentage
The calculator shows the full picture, then a plain-language health check.
Markup and margin are not the same
Markup is calculated from cost. Margin is calculated from the selling price. On a job that costs £8,000:
25% markup
Adds £2,000, giving a selling price of £10,000. The gross profit is £2,000 — but the gross margin is 20%, not 25%. Markup = profit ÷ cost.
20% gross margin
The same £2,000 profit on a £10,000 selling price is a 20% margin. Margin = profit ÷ selling price. The same quote always shows a higher markup than margin.
Work backwards from the margin you need
Enter a target margin and the calculator works out the selling price needed to hit it.
£8,000
20%
£10,000
See what a discount actually removes
A discount comes out of the selling price, not the job cost — so the reduction usually comes directly from gross profit.
The calculator shows the revised profit and margin after a percentage or fixed discount, including whether the quote still meets the target you entered. A 10% discount rarely means a 10% profit cut — it is usually much larger.
Test the quote before the job tests it
Supplier increases, extra labour time and revised subcontractor prices can quickly reduce the margin. Test what happens if:
Tax is not gross profit
Where VAT or another tax applies, the calculator separates it from the selling price before calculating profit.
Gross profit must be calculated from the £10,000 net selling price, not the £12,000 total paid by the customer.
£12,000
£10,000
£2,000
£10,000
Who is this calculator for?
Subcontractors checking a fixed-price quote
Watch: why trades underprice their work
Why busy trades still barely break even: confusing markup with margin, forgetting overhead and non-productive time, and pricing against the competition instead of their own costs.
Check the margin before the quote moves forward
That makes it easier to compare the original estimate with what the work actually cost later — one connected record from enquiry to quote, job, invoice and payment.
Build and check the quote
Use these alongside the margin check.
Trade Job Pricing Calculator
Build the complete labour, material and job-cost structure before creating the customer quote.
Build the quote →True Labour Cost Calculator
Work out the internal hourly labour cost used in the quote.
Calculate labour cost →Estimated vs Actual Job Profit
Compare the original quote with what the completed job actually cost.
Compare the outcome →Free tools for the job
Put these numbers to work — free FieldHive tools, no sign-up.
Quote & Estimate Builder
Build a professional quote or estimate — line items, VAT and a valid-until date.
build and send the quote →Trade Job Pricing Calculator
Build a job price up from labour and materials.
build the price up first →Material Markup & Margin Calculator
Build the true material cost and set the selling price.
check your material margin →Job Variation Pricing Calculator
Price variations and extras fairly when the scope changes.
price a variation →Video: Why Trades Underprice
Watch the common pricing mistakes that cost trades profit — and how to fix them.
watch: why trades underprice →Quote profit margin questions
Quick answers to the questions people ask most.
Check the margin before you send the quote
See the gross profit, compare it with your target, and test a discount or a cost increase first. FieldHive then keeps the accepted quote connected through the job, invoice and payment.
