HOW TO USE IT
How to use the Chimney Flashing Repair Cost Calculator
- 1
Enter the complete estimated cost of delivering the job.
- 2
Choose the gross margin you want the selling price to produce.
- 3
Review the required selling price and gross profit dollars.
- 4
Compare the equivalent markup so you do not confuse the two percentages.
THE MATH
Target margin pricing formula
Selling price = job cost ÷ (1 − target margin percentage)Gross margin describes the share of selling price left after job cost. Because the percentage uses selling price—not cost—as its base, simply adding the target margin to cost will produce a lower margin than intended.
PRACTICAL EXAMPLE
Pricing a $7,000 job for a 25% margin
To retain a 25% gross margin on $7,000 of job cost, the required price is $9,333.33. That leaves $2,333.33 in gross profit and is equivalent to a 33.33% markup on cost.
FAQ
Frequently asked questions
Why can’t I add 25% to get a 25% margin?
Adding 25% to cost creates a 25% markup, which equals a 20% margin. Margin uses selling price as the denominator.
What costs should I enter?
Include all costs required to deliver the job, including labor burden, materials, subcontractors, equipment and allocated overhead when appropriate.
Can margin be 100%?
No. With a positive cost, a 100% gross margin would require an infinite selling price.
Is gross margin the same as net profit?
No. Gross margin covers job-level cost. Net profit also accounts for remaining operating expenses, interest and taxes.