Welding & Fabrication worked example

Fabrication Quote Margin at 22% target gross margin: a worked example

This worked example runs the fabrication quote margin numbers for a tougher week than the baseline: 22% target gross margin instead of the typical 30%. Calculate fabrication quote gross margin from gross profit dollars and quoted selling price, with gap to the target margin.

The inputs for this scenario

  • Gross profit on the quote: 3,200 $ (held at the documented default)
  • Quoted selling price: 12,500 $ (held at the documented default)
  • Target gross margin: 22 % (the input this scenario stresses; the baseline uses 30)

Working through the calculation

  • The calculation starts from the formula this tool documents: Fabrication quote gross margin = gross profit on the quote ÷ quoted selling price × 100.
  • Fabrication quote gross margin works out to 25.6 % margin at these inputs, and this is the headline figure for the scenario.
  • Margin gap to shop target works out to -3.6 points at these inputs.
  • Gross profit on the quote works out to 3,200 count at these inputs.
  • Quoted selling price works out to 12,500 count at these inputs.

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. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Fabrication quote gross margin: 25.6 % margin (headline result)
  • Margin gap to shop target: -3.6 points
  • Gross profit on the quote: 3,200 count
  • Quoted selling price: 12,500 count

Run it with your numbers

  • To rerun this with your own numbers, open the live Fabrication Quote Margin calculator, set target gross margin to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.