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# How Estimates are Calculated

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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 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