How Estimates are Calculated
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    How Estimates are Calculated

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    Résumé de l’article

    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.


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    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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