How Estimates are Calculated
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How Estimates are Calculated
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NOTICE
Unit Cost Estimates & Material and Labor Estimates have been retired and are only available for use in STACK accounts created prior to August 4, 2025.
If your STACK account was created on or after August 4, 2025, please refer to our Estimate Worksheet help documentation.
If your STACK account was created on or after August 4, 2025, please refer to our Estimate Worksheet help documentation.
Calculating an estimate is a math intensive process. STACK does the time-consuming math for you, which reduces errors and increases accuracy. If you are curious, this article illustrates the formulas used for calculations in the estimate.
Estimate Formulas
Adjusted Quantity = Quantity + Waste Amount
Extended Cost = Adjusted Quantity * Unit Cost
Total Markup Amount = Extended Cost * Total Markup Percentage
Overhead Markup = Extended Cost * Overhead Markup Percentage
Additional Markup = (Extended Cost + Line Item Markup Amount + Overhead Markup Amount) * Additional Markup Percentage
Total Markup = Line Item Markup + Overhead Markup + Additional Markup
Line Item Markup Amount = Extended Cost * Line Item Markup Percentage
Selling Price = Extended Cost + Total Markup
Tax Amount = Selling Price * Tax Percentage
Selling Price with Tax = Selling Price + Tax Amount
Gross Margin Percentage = Total Markup / Selling Price
Net Profit Amount = Selling Price - Extended Cost - Overhead Markup
Net Profit Percentage = Net Profit Amount / Selling Price
Summary by Key Unit
Selling Price per [Key Unit] = Selling Price / Project Size
Net Profit per [Key Unit] = Net Profit amount / Project Size
Detail by Key Unit
Extended Cost = Extended Cost by Type / Project Size
Total Markup = Total Markup by Type / Project Size
Selling Price = Selling Price by Type / Project Size
Net Profit = Net Profit by Type / Project Size
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