40.00% is the example result. Margin measures the share of selling revenue left after the costs represented here. A 20% margin is not the same as adding 20% to cost.
Check the share of a change-order price left after the entered change-order cost. Keep additional labour and materials inside a consistent cost scope.
Protecting contribution before accepting a price
Margin measures the share of selling revenue left after the costs represented here. A 20% margin is not the same as adding 20% to cost. A quote can meet a revenue target and still leave too little to cover delivery. Separate the selling-price denominator from the cost denominator: margin and markup answer different questions. A discount changes contribution even when the supplier cost stays fixed.
What the model includes
Margin (%) = (revenue or price − modeled cost) ÷ revenue or price × 100. When EBITDA is supplied, use EBITDA ÷ revenue × 100. A pricing review should retain the supplier cost, sale price and the reason for any allowance. Returns, payment charges, delivery and tax require explicit treatment; they should not disappear inside a percentage labelled profit. Compare the proposed price with the customer agreement and delivery capacity. A mathematically achievable margin does not establish that buyers will accept the offer.
Example with the supplied inputs
Change order price: 5000; Change order cost: 3000. Result: 40.00%. The values are illustrative.
Compare one changed input
Change order price changes from 5000 to 5500. The result becomes 45.45%. All other inputs remain fixed.
Calculation rule
Margin (%) = (revenue or price − modeled cost) ÷ revenue or price × 100. When EBITDA is supplied, use EBITDA ÷ revenue × 100.
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Change order price | 5000 | Use change order price on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Change order cost | 3000 | Use change order cost on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 40.00% is the example result. Margin measures the share of selling revenue left after the costs represented here. A 20% margin is not the same as adding 20% to cost. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Change order price, Change order cost. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Change order price on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 40.00%.
Change Change order price from 5000 to 5500 while keeping every other value fixed. The result becomes 45.45%. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026