Welding & Fabrication worked example

Fabrication Quote Margin at 35% target gross margin: a worked example

This scenario runs the fabrication quote margin calculation on the strong side: 35% target gross margin, with every other input held at its documented default. Use it on every fab quote before sending to confirm the gross margin clears the shop target after material, labor, and burden are loaded.

The inputs for this scenario

  • Gross profit on the quote: 3,200 $ (unchanged)
  • Quoted selling price: 12,500 $ (unchanged)
  • Target gross margin: 35 % (raised for this scenario; the documented default is 30)

Working through the calculation

  • Applying the documented formula (Fabrication quote gross margin = gross profit on the quote ÷ quoted selling price × 100) to the inputs above produces each figure below.
  • At this operating point the engine returns 25.6 % margin for fabrication quote gross margin, the number this scenario is built around.
  • At this operating point the engine returns 9.4 points for margin gap to shop target.
  • At this operating point the engine returns 3,200 count for gross profit on the quote.
  • At this operating point the engine returns 12,500 count for quoted selling price.

How this compares with the baseline

  • Against the tool's baseline example, where target gross margin sits at 30% and the headline result is 25.6 % margin, this scenario lands almost exactly on the baseline at 25.6 % margin.
  • Use it on every quote before release, and when reviewing won jobs to see whether actual margins held against target. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Fabrication quote gross margin: 25.6 % margin (headline result)
  • Margin gap to shop target: 9.4 points
  • Gross profit on the quote: 3,200 count
  • Quoted selling price: 12,500 count

Run it with your numbers

  • Every input above is editable in the live Fabrication Quote Margin calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.