How Estimates are Calculated

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