Contract Manufacturing, Job Shop Quoting & Make-to-Order calculator
Contract Manufacturing Margin Calculator
Use this calculator to compare quoted selling price against estimated material, labor, overhead, tooling, outside processing, packaging, and freight cost for a make-to-order job.
What this calculator does
- Calculate gross margin for a quoted contract manufacturing job or customer program.
- checking whether a customer quote meets the shop margin target before release
- The result shows quoted gross margin percentage and margin dollars.
Formula used
- quoted gross margin dollars = quoted selling price for the job - estimated total job cost
- contract manufacturing gross margin = quoted gross margin dollars ÷ quoted selling price margin basis × 100
Inputs explained
- quoted selling price for the job: Use the net price expected on the customer quote after discounts, freight terms, commissions, and customer-specific allowances.
- estimated total job cost: Include material, setup, run labor, machine time, outside services, tooling, inspection, packaging, overhead, and normal scrap allowance.
- quoted selling price margin basis: Use the same net quote price or finance-approved revenue basis used for gross margin reporting.
How to use the result
- Use it to approve pricing, adjust markup, negotiate scope, or reject underpriced work.
- Treat the result as an estimate until the RFQ package, customer drawing revision, material quote, routing, setup standard, shop rate, outside service quote, scrap history, open capacity, due date, and quoted commercial terms are confirmed for the same job, lot size, and customer order.
Common questions
- What is the contract manufacturing margin calculator for? Use this calculator to compare quoted selling price against estimated material, labor, overhead, tooling, outside processing, packaging, and freight cost for a make-to-order job.
- What information should I enter? Enter quoted selling price for the job, estimated total job cost, and quoted selling price margin basis for the same quote, job, customer order, or pricing scenario.
- What does the result tell me? The result shows quoted gross margin percentage and margin dollars.
- When is the result only an estimate? Treat the result as an estimate until the RFQ package, customer drawing revision, material quote, routing, setup standard, shop rate, outside service quote, scrap history, open capacity, due date, and quoted commercial terms are confirmed for the same job, lot size, and customer order.
Last reviewed 2026-05-12.