How Estimates are Calculated
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    How Estimates are Calculated

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    Article summary

    En Español

    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 on the Estimate worksheet.

    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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