Contract Manufacturing, Job Shop Quoting & Make-to-Order calculator
Margin Leakage Calculator
Use this calculator to compare quoted gross margin dollars with actual or forecast margin dollars so hidden cost growth, concessions, rework, and scope creep are visible.
What this calculator does
- Estimate margin dollars lost between quoted and actual job performance.
- reviewing jobs that shipped below quoted profitability
- The result estimates margin lost versus the original quote.
Formula used
- margin leakage dollars = quoted gross margin dollars - actual or forecast gross margin dollars
- margin leakage rate = margin leakage dollars ÷ quoted revenue leakage basis × 100
Inputs explained
- quoted gross margin dollars: Use margin expected at quote approval from price minus estimated cost.
- actual or forecast gross margin dollars: Use the latest closed-job or forecast margin after actual material, labor, outside processing, rework, concessions, and freight.
- quoted revenue leakage basis: Use quoted selling price or recognized revenue for leakage percentage reporting.
How to use the result
- Use it to identify root causes, recover customer changes, update standards, and improve quote approval discipline.
- 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 margin leakage calculator for? Use this calculator to compare quoted gross margin dollars with actual or forecast margin dollars so hidden cost growth, concessions, rework, and scope creep are visible.
- What information should I enter? Enter quoted gross margin dollars, actual or forecast gross margin dollars, and quoted revenue leakage basis for the same quote, job, customer order, or pricing scenario.
- What does the result tell me? The result estimates margin lost versus the original quote.
- 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.