How do you calculate quote margin for a CAM supply quote?

Subtract the required delivered production cost from the quoted revenue to get gross margin dollars, then divide by the reference quoted revenue. With $125 quoted, $100 delivered cost and $100 reference, that is $25 gross margin / $100 = 25%.

What is a good quote margin for cathode active material?

Because most of the CAM sell price is pass-through metal value, conversion margins are thin: 8-20% gross on the full delivered price is typical for established NCM, while differentiated single-crystal or high-nickel grades can support more. The 25% in the worked example is a strong, premium-grade quote.

Should metal value be included in the quoted revenue?

For this calculator, enter the full quoted revenue and the full delivered cost so the pass-through metal nets out. If you want conversion-only margin, strip metal value from both the quoted revenue and the delivered cost before entering them.

Why use a separate reference quoted revenue instead of the quoted revenue itself?

The reference field lets you normalize margin against a baseline price, for example a contract index or a prior quote, so re-quotes after a metals move stay comparable. Set it equal to the quoted revenue for a standard margin-on-sales calculation.

Quote margin vs. markup, what is the difference?

Markup is gross margin divided by cost; quote margin here is gross margin divided by revenue. The same $25 is a 25% margin on $100 revenue but a 25% markup on $100 cost only because cost and reference happen to match here; on most quotes they diverge.

How often should CAM quote margin be recalculated?

Whenever the underlying metal index resets, typically monthly or per shipment, because a 10-15% move in nickel or lithium can wipe out a thin conversion margin if the quote is not re-priced or indexed.

Cathode Active Material & Precursor Manufacturing calculator

Quote Margin Calculator

Quote margin tells a cathode active material (CAM) or precursor (pCAM) producer how much of a quoted price survives after the fully delivered cost of making and shipping the material. It is the number commercial and plant-finance teams check before signing an offtake or tolling agreement, because CAM economics are dominated by volatile nickel, cobalt, lithium and manganese feedstock prices that can swing the cost base monthly. Unlike a simple cost-plus markup, this metric expresses gross margin as a percentage of the reference quoted revenue so quotes are comparable across chemistries and tonnages. On a real CAM line it is the first gate a quote has to clear before qualification and capacity are discussed.

What this calculator does

Estimate gross margin on a CAM or precursor supply quote by comparing quoted revenue with required production and material cost.
Use it when quote margin in cathode active material and precursor manufacturing needs a clean margin number for a cathode active material and precursor manufacturing go / no-go review.
It computes gross margin dollars (quoted revenue minus required delivered production cost) and expresses that as a percentage of the reference quoted revenue.

Formula used

Quote gross margin dollars = quoted CAM or precursor revenue - required delivered production cost
CAM quote margin = quote gross margin dollars ÷ reference quoted revenue

Inputs explained

Quoted CAM or precursor revenue:
Required delivered production cost:
Reference quoted revenue:

How to use the result

Use it when pricing a new CAM or precursor supply lot, re-quoting after a metals index move, or comparing two offtake structures on a like-for-like margin basis.
It is a gross-margin view only, excluding qualification, R&D amortization, freight surcharges and metal pass-through reconciliation, so a healthy quote margin here can still erode once those layers are applied.

Common questions

How do you calculate quote margin for a CAM supply quote? Subtract the required delivered production cost from the quoted revenue to get gross margin dollars, then divide by the reference quoted revenue. With $125 quoted, $100 delivered cost and $100 reference, that is $25 gross margin / $100 = 25%.
What is a good quote margin for cathode active material? Because most of the CAM sell price is pass-through metal value, conversion margins are thin: 8-20% gross on the full delivered price is typical for established NCM, while differentiated single-crystal or high-nickel grades can support more. The 25% in the worked example is a strong, premium-grade quote.
Should metal value be included in the quoted revenue? For this calculator, enter the full quoted revenue and the full delivered cost so the pass-through metal nets out. If you want conversion-only margin, strip metal value from both the quoted revenue and the delivered cost before entering them.
Why use a separate reference quoted revenue instead of the quoted revenue itself? The reference field lets you normalize margin against a baseline price, for example a contract index or a prior quote, so re-quotes after a metals move stay comparable. Set it equal to the quoted revenue for a standard margin-on-sales calculation.
Quote margin vs. markup, what is the difference? Markup is gross margin divided by cost; quote margin here is gross margin divided by revenue. The same $25 is a 25% margin on $100 revenue but a 25% markup on $100 cost only because cost and reference happen to match here; on most quotes they diverge.

Last reviewed 2026-05-12.