Calculators · Updated 2026-10-30

Material and outside-processing markup calculator

Your part priced in about 90 seconds, no account.

Price purchased items by applying a separate markup to material, outside processing, hardware and freight, then sum the selling prices. Gross margin is the added dollars divided by sales, not by cost.

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Price each purchased cost line

Example costs only. These line markups replace the quote-wide markup on these items; applying both compounds the markup. Gross margin here excludes your unallocated overhead.

Purchased items: cost, selling price, gross margin
LineCostMarkupPriceGross margin
Material$500.0015%$575.0013.04%
Outside processing$250.0025%$312.5020%
Hardware$100.0020%$120.0016.67%
Shipping$60.000%$60.000%
Total$910.00$157.50$1,067.5014.75%

Separate the costs you actually carry

Use your delivered material purchase cost, including supplier cutting charges and any unavoidable minimum buy. Enter the finishing vendor’s quoted lot and piece costs as one outside-processing total for this order. Purchased inserts, hardware and freight often have different handling effort, credit exposure and replacement risk. That is a reason to choose different markups deliberately; it is not evidence that any particular percentage is an industry standard. Zero freight markup is a valid choice if you intend a direct pass-through.

Read the example line by line

The defaults use $500 material at 15%, $250 outside processing at 25%, $100 hardware at 20% and $60 shipping at zero markup. Those lines sell for $575, $312.50, $120 and $60. Total purchased cost is $910 and total selling price is $1,067.50. The $157.50 difference is 14.75% of selling price. It is the gross margin on these purchased lines before any shop overhead that was not already included, not a promise about net profit on the job.

Prevent a second accidental markup

Decide whether the per-line percentages replace or precede a quote-wide markup. Applying 15% to material and then 30% to the entire marked-up quote produces 49.5% effective material markup: 1.15 × 1.30 − 1. The calculator sums the per-line selling prices once. Labor and machine operations belong in the rest of the quote, where a fully burdened rate may already contain the intended return. Document that policy on your rate card so different estimators handle the same vendor invoice consistently.

Sources and limits

Claims are dated where they can change. Product calculations are examples from the stated inputs, not a promise about a customer's quote. Competitor wording is attributed to the source shown.

  • All dollar amounts and operating inputs on this page are editable examples, not market averages or supplier offers.

Price one of your own parts

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