Abrasive Blasting, Shot Peening & Surface Prep calculator
Abrasive Blast Quote Margin and Target Price Calculator
Build the estimated job cost from labor plus other direct cost, overhead and contingency, then read the quoted margin, markup and target price. Enter quoted price and target margin to see the gap to target.
What this calculator does
- Estimated cost, gross margin on price, markup on cost and the price required for a target margin.
Formula used
- Direct cost = labor cost + other direct cost
- Total estimated cost = direct cost × (1 + overhead % ÷ 100) × (1 + contingency % ÷ 100)
- Gross margin = (quoted price − total cost) ÷ quoted price × 100
- Target price = total estimated cost ÷ (1 − target margin % ÷ 100)
Inputs explained
- Direct Labor Cost: Blasting, masking, handling, inspection and supervision labor.
- Other Direct Cost: Media, energy, equipment, freight and subcontract cost combined.
- Overhead Rate on Direct Cost: Approved overhead allocation rate.
- Contingency on Cost Plus Overhead: Documented uncertainty allowance, separate from profit.
- Quoted Job Price: Selling price before tax unless policy states otherwise.
- Target Gross Margin: Profit as a percentage of selling price.
How to use the result
- Best suited to quote approval, cost-change repricing, margin versus markup training.
- Does not approve commercial terms, escalation, tax or financing. Target margin is a business input, not an industry standard. Expected rework belongs in cost or contingency, never in both.
Common questions
- What is the difference between margin and markup? Margin divides profit by selling price. Markup divides profit by cost. The same quote produces different percentages on the two bases.
- Is contingency profit? No. Contingency is an allowance for unresolved cost uncertainty. Unused contingency may later show up as realized profit, but it is not guaranteed profit here.
- Where should expected rework go? Include an approved expected exposure in estimated cost or in contingency under a clear policy, but never in both places.
- Does target price guarantee profit? No. It achieves the target against the entered estimate; actual cost, scope, terms and execution determine realized profit.
Last reviewed 2026-10-01.