At a $200 quote with $130 fixed cost and a 3% quote-based payment fee, profit is $200 × 0.97 − $130 = $64. Margin is $64 ÷ $200 = 32%.
Calculate operating profit
Profit at a quoted price equals price × (1 − quote-based fee rate) − fixed job cost. The fixed cost should already include your chosen owner pay target.
Turn profit into margin
Divide that operating profit by the selling price. Margin can be negative when a quote fails to cover costs. It is a before-tax operating figure.
Compare with markup
Markup divides profit by fixed cost instead. The two percentages answer different questions and should not be substituted.
When to use this method
Use the existing-price field in a calculator when you already have a customer quote. It shows operating profit and margin at that price using the current job-cost assumptions.
A mistake to avoid
Do not call revenue minus materials “profit” while omitting your own work, helper pay, or quote-based fees. The margin changes when those costs are added.
What this does not tell you
These are calculation examples using stated assumptions. They are not national service rates, local quotes, tax advice, or a prediction of demand. Confirm your own scope, costs, fee basis, and any local requirements before sending a price.
Source and updates
The formulas and assumptions are explained in our methodology. This guide was prepared on 2026-11-06. If you find an error, send a correction.