What is the difference between margin and markup?

Margin divides profit by selling price. Markup divides profit by cost. They produce different percentages for the same quote. The fixed secondary assumptions are listed on this page and in the downloadable workbook so the four-input result remains auditable.

Is contingency profit?

No. Contingency is an allowance for unresolved cost uncertainty. Unused contingency may later contribute to realized profit, but it is not priced as guaranteed profit here. The fixed secondary assumptions are listed on this page and in the downloadable workbook so the four-input result remains auditable.

Where should expected rework go?

Include an approved expected exposure in estimated cost or contingency, with clear policy, but do not count it twice. The fixed secondary assumptions are listed on this page and in the downloadable workbook so the four-input result remains auditable.

Does target price guarantee profit?

No. It achieves the target against the entered estimate; actual cost, scope, terms, and execution determine realized profit. The fixed secondary assumptions are listed on this page and in the downloadable workbook so the four-input result remains auditable.

What belongs in all non-labor direct cost?

Combine media, compressor energy, equipment allocation, masking material, waste, disposal, freight, rentals and outside services caused directly by the job. Keep labor in its own field and do not add overhead here because the calculator applies the entered overhead percentage separately. Profit is never a cost input.

Why are contingency and target margin fixed?

They provide a clear review baseline without turning a four-input margin check into a full pricing model. Their values are disclosed in the assumptions and workbook. If company policy or job risk requires different percentages, complete the controlled quote model and document the approval rather than silently treating this screen as policy.

Abrasive Blasting, Shot Peening & Surface Prep calculator

Abrasive Blast Quote Margin and Target Price Calculator

Check the commercial margin of a blast quote with four figures: labor cost, one combined non-labor direct-cost amount, overhead percentage and quoted price. The calculator applies a documented contingency and target-margin baseline, then reports estimated total cost, profit, margin, markup, target price and price gap. Combining media, energy, equipment and subcontract charges into one input keeps the page usable while preserving the distinction between direct cost and overhead. This is a quote review tool, not an accounting system; scope, exclusions, escalation, tax, payment terms and contractual risk still require deliberate commercial review.

What this calculator does

Build a transparent estimated cost, apply contingency to cost, and distinguish gross margin on price from markup on cost.
Use it for quote approval, cost-change repricing, margin-versus-markup training, performing a final independent margin check before a blast quote is released..
Build a transparent estimated cost, apply contingency to cost, and distinguish gross margin on price from markup on cost.

Formula used

Quote margin = quoted price minus labor, entered non-labor direct cost, fixed contingency and entered overhead.
Fixed secondary assumptions compiled into this release: Media and consumables cost: 0 $; Energy and utility cost: 0 $; Equipment cost: 0 $; Contingency on cost plus overhead: 10 %; Target gross margin: 25 %.

Inputs explained

Direct labor cost: Direct blasting, masking, handling, inspection, and supervision cost included in the estimate.
All non-labor direct cost: Combined media, energy, equipment, subcontract and other direct job cost before overhead.
Overhead rate on direct cost: Approved overhead allocation rate.
Quoted job price: Selling price before applicable tax unless company policy states otherwise.

How to use the result

Best suited to quote approval, cost-change repricing, margin-versus-markup training, performing a final independent margin check before a blast quote is released..
The four-input result is conditional on the disclosed fixed assumptions; use a detailed engineering model when they are not representative. Does not approve commercial terms, escalation, tax, financing, warranty, or legal risk. Target margin is a business input, not an industry standard. Expected rework exposure should be deliberately included in cost or contingency, not both. Taxes, financing, escalation, warranty, liquidated damages, payment timing and strategic pricing are outside the model.

Common questions

What is the difference between margin and markup? Margin divides profit by selling price. Markup divides profit by cost. They produce different percentages for the same quote. The fixed secondary assumptions are listed on this page and in the downloadable workbook so the four-input result remains auditable.
Is contingency profit? No. Contingency is an allowance for unresolved cost uncertainty. Unused contingency may later contribute to realized profit, but it is not priced as guaranteed profit here. The fixed secondary assumptions are listed on this page and in the downloadable workbook so the four-input result remains auditable.
Where should expected rework go? Include an approved expected exposure in estimated cost or contingency, with clear policy, but do not count it twice. The fixed secondary assumptions are listed on this page and in the downloadable workbook so the four-input result remains auditable.
Does target price guarantee profit? No. It achieves the target against the entered estimate; actual cost, scope, terms, and execution determine realized profit. The fixed secondary assumptions are listed on this page and in the downloadable workbook so the four-input result remains auditable.
What belongs in all non-labor direct cost? Combine media, compressor energy, equipment allocation, masking material, waste, disposal, freight, rentals and outside services caused directly by the job. Keep labor in its own field and do not add overhead here because the calculator applies the entered overhead percentage separately. Profit is never a cost input.

Last reviewed 2026-08-24.