Act on the result
Use the minimum client price as the approval floor.
Educational only: Business decision support, not accounting, tax or legal advice.
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Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this planner helps you decide
Best for
Agencies and service owners pricing subcontracted delivery.
Outputs
Base and protected delivery cost, minimum client price, markup, contribution and margin.
Start here
Include coordination time, a percentage risk buffer and any non-duplicative fixed allowance alongside the subcontractor quote.
Use a different tool when: Do not use this to convert an annual cost base with Salary to Contract Rate Planner, set a travel billing policy with Travel Time Billing Planner, or price an approved scope change with Construction Change Order Pricing Planner. Use this tool to price subcontracted delivery after coordination and risk.
Quote & capacity
Subcontractor Markup: base and protected delivery cost
Base and protected delivery cost, minimum client price, markup, contribution and margin.
Amounts use the same currency as your inputs. No currency conversion is performed.
Subcontractor Markup
Price subcontracted delivery after coordination, a percentage risk buffer, any explicit risk allowance and target margin.
Your numbers stay in this browser
Supplier quote or expected cost.
Internal management time.
Coordination labour cost.
Percentage protection for warranty, rework or supplier risk.
Explicit contingency not already represented by the percentage risk buffer.
Contribution retained.
Price to test.
Decision result
Every result is derived by the registered service and project engine.
PDF and CSV exports stay on this device. Clean page links contain no inputs.
- Base Delivery Cost
- 3,480.00/project
- Protected Delivery Cost
- 3,480.00/project
- Total Delivery Cost
- 3,780.00/project
- Minimum client price
- 5,400.00/project
- Required Markup
- 80%
- Proposed Contribution
- 1,720.00/project
- Proposed Margin
- 31.3%
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Current scenario5,400.00/projectBaseline
Lower Target margin5,286.71/project−113.29/project (−2.1%)
Higher Target margin5,518.25/project+118.25/project (+2.2%)
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Minimum client price
Minimum Client Price
total delivery cost ÷ (1 − target margin)5,400/projectResult5,400.00/project
Reports/project from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.
Subcontractor Markup Planner formulas →Inputs used by these formula steps
- Minimum Client PriceSubcontractor Cost
- 3,000
- Minimum Client PriceCoordination Hours
- 8
- Minimum Client PriceInternal Cost Per Hour
- 60
- Minimum Client PriceRisk Buffer Rate
- 0
- Minimum Client PriceRisk Allowance
- 300
- Minimum Client PriceTarget Margin
- 0.3
- Minimum Client PriceProposed Client Price
- 5,500
Base Delivery Cost
Base Delivery Cost
subcontractor cost + coordination hours × internal cost per hour3,480/projectResult3,480.00/project
Reports/project from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.
Subcontractor Markup Planner formulas →Inputs used by these formula steps
- Base Delivery CostSubcontractor Cost
- 3,000
- Base Delivery CostCoordination Hours
- 8
- Base Delivery CostInternal Cost Per Hour
- 60
- Base Delivery CostRisk Buffer Rate
- 0
- Base Delivery CostRisk Allowance
- 300
- Base Delivery CostTarget Margin
- 0.3
- Base Delivery CostProposed Client Price
- 5,500
Protected Delivery Cost
Protected Delivery Cost
base delivery cost ÷ (1 − risk buffer rate)3,480/projectResult3,480.00/project
Reports/project from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.
Subcontractor Markup Planner formulas →Inputs used by these formula steps
- Protected Delivery CostSubcontractor Cost
- 3,000
- Protected Delivery CostCoordination Hours
- 8
- Protected Delivery CostInternal Cost Per Hour
- 60
- Protected Delivery CostRisk Buffer Rate
- 0
- Protected Delivery CostRisk Allowance
- 300
- Protected Delivery CostTarget Margin
- 0.3
- Protected Delivery CostProposed Client Price
- 5,500
Total Delivery Cost
Total Delivery Cost
protected delivery cost + additional risk allowance3,780/projectResult3,780.00/project
Reports/project from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.
Subcontractor Markup Planner formulas →Inputs used by these formula steps
- Total Delivery CostSubcontractor Cost
- 3,000
- Total Delivery CostCoordination Hours
- 8
- Total Delivery CostInternal Cost Per Hour
- 60
- Total Delivery CostRisk Buffer Rate
- 0
- Total Delivery CostRisk Allowance
- 300
- Total Delivery CostTarget Margin
- 0.3
- Total Delivery CostProposed Client Price
- 5,500
Required Markup
Required Markup
minimum client price ÷ subcontractor cost − 10.8 decimal rateResult80%
Reports decimal rate from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.
Subcontractor Markup Planner formulas →Inputs used by these formula steps
- Required MarkupSubcontractor Cost
- 3,000
- Required MarkupCoordination Hours
- 8
- Required MarkupInternal Cost Per Hour
- 60
- Required MarkupRisk Buffer Rate
- 0
- Required MarkupRisk Allowance
- 300
- Required MarkupTarget Margin
- 0.3
- Required MarkupProposed Client Price
- 5,500
Proposed Contribution
Proposed Contribution
proposed price − total delivery cost1,720/projectResult1,720.00/project
Reports/project from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.
Subcontractor Markup Planner formulas →Inputs used by these formula steps
- Proposed ContributionSubcontractor Cost
- 3,000
- Proposed ContributionCoordination Hours
- 8
- Proposed ContributionInternal Cost Per Hour
- 60
- Proposed ContributionRisk Buffer Rate
- 0
- Proposed ContributionRisk Allowance
- 300
- Proposed ContributionTarget Margin
- 0.3
- Proposed ContributionProposed Client Price
- 5,500
Proposed Margin
Proposed Margin
proposed contribution ÷ proposed price0.31 decimal rateResult31.3%
Reports decimal rate from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.
Subcontractor Markup Planner formulas →Inputs used by these formula steps
- Proposed MarginSubcontractor Cost
- 3,000
- Proposed MarginCoordination Hours
- 8
- Proposed MarginInternal Cost Per Hour
- 60
- Proposed MarginRisk Buffer Rate
- 0
- Proposed MarginRisk Allowance
- 300
- Proposed MarginTarget Margin
- 0.3
- Proposed MarginProposed Client Price
- 5,500
Inputs used
- Subcontractor cost
- 3,000
- Coordination hours
- 8
- Internal cost per hour
- 60
- Risk buffer rate
- 0
- Additional risk allowance
- 300
- Target margin
- 0.3
- Proposed client price
- 5,500
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| coordinationHours | Internal management time. | hours/project | 0 to 10000000 | Required | 8 |
| internalCostPerHour | Coordination labour cost. | currency units/hour | 0 to 10000000 | Required | 60 |
| proposedClientPrice | Price to test. | currency units/project | 0 to 10000000 | Required | 5500 |
| riskAllowance | Explicit contingency not already represented by the percentage risk buffer. | currency units/project | 0 to 10000000 | Required | 300 |
| riskBufferRate | Percentage protection for warranty, rework or supplier risk. | proportion of base delivery cost protected for risk | 0 to 0.99 | Required | 0 |
| subcontractorCost | Supplier quote or expected cost. | currency units/project | 0 to 10000000 | Required | 3000 |
| targetMargin | Contribution retained. | proportion of client price retained as contribution | 0 to 0.99 | Required | 0.3 |
Subcontractor Markup: base and protected delivery cost
The subcontractor markup result uses only the entered commercial assumptions.
Formula summary
- Primary formula
- minimum client price = ((subcontractor cost + coordination cost) ÷ (1 − risk buffer) + risk allowance) ÷ (1 − target margin)
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Stress-test the decision
Retest coordination hours and risk before signing the supplier scope.
When this estimate can be misleading
- Results depend on the accuracy and consistent basis of user-entered assumptions.
- The planner does not forecast demand, delivery performance or contract outcomes.
- Use the result as educational business decision support, not accounting, tax or legal advice.
- The subcontractor markup result uses only the entered commercial assumptions.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- How to Cost Labour and Materials in a Service Quote
Keep labour, materials, subcontractors and allocated overhead visible without counting the same cost twice.
Read guide
Frequently asked questions
How do I price subcontracted delivery after coordination, warranty and supplier risk?
Use the minimum client price as the approval floor.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.