Contract Manufacturing, Job Shop Quoting & Make-to-Order calculator
Outside Processing Markup Calculator
Use this calculator to apply markup capture and customer acceptance assumptions to plating, heat treat, coating, grinding, testing, certification, or other outside services.
What this calculator does
- Estimate recoverable markup dollars on outside processing in a job quote.
- pricing pass-through supplier services without losing administration, risk, and cash-flow cost
- The result estimates outside processing markup dollars recoverable in the quote.
Formula used
- gross outside processing markup opportunity = outside processing cost per job or lot × outside processing lots or purchase orders
- recoverable outside processing markup = gross outside processing markup opportunity × outside processing markup percentage × customer markup acceptance
Inputs explained
- outside processing cost per job or lot: Use supplier quoted cost for plating, heat treat, coating, testing, grinding, certification, or other outside service per lot.
- outside processing lots or purchase orders: Count the lots, purchase orders, releases, or line items requiring outside processing for the quoted work.
- outside processing markup percentage: Use the markup percentage intended to recover purchasing, quality follow-up, freight coordination, risk, and cash timing.
- customer markup acceptance: Use less than 100% if the customer caps pass-through markup or expects open-book supplier pricing.
How to use the result
- Use it to price supplier-managed operations, compare supplier choices, and avoid under-recovering pass-through 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 outside processing markup calculator for? Use this calculator to apply markup capture and customer acceptance assumptions to plating, heat treat, coating, grinding, testing, certification, or other outside services.
- What information should I enter? Enter outside processing cost per job or lot, outside processing lots or purchase orders, outside processing markup percentage, and customer markup acceptance from the same RFQ, customer order, routing, capacity window, or quote scenario.
- What does the result tell me? The result estimates outside processing markup dollars recoverable in the 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.