33.3333 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.
Margin measures the share of selling revenue left after the costs represented here.
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
Quoted price: 12000; Estimated delivery cost: 8000. Result: 33.3333. The values are illustrative.
Compare one changed input
Quoted price changes from 12000 to 13200. The result becomes 39.3939. 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 |
|---|---|---|
| Quoted price | 12000 | Use quoted 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. |
| Estimated delivery cost | 8000 | Use estimated delivery 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: 33.3333 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 Quoted price, Estimated delivery 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 Quoted 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 33.3333.
Change Quoted price from 12000 to 13200 while keeping every other value fixed. The result becomes 39.3939. 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