Profit Margin Calculator

How to use it

1. Enter the cost total of the project: PEM + overheads + contingenci is (all the costs imputables)
2. Enter the price of sale to the client (budget ofertado, IVA not included to this cálculo)
3. Calculate the profit gross: price of sale − cost total (in eur)
4. Calculate the margin over sale: profit ÷ price of sale × 100 (lo that ganas per each eur facturado)
5. Calculate the markup over cost: profit ÷ cost × 100 (incremento that aplicas over the cost to Obtain the PVP)
6. Interpret: a margin of the 20% and a markup of the 25% is lo same; the margin siempre is lesser that the markup

Common mistakes

• ⚠️ Confusing margin (over sale) with markup (over cost): a markup of the 25% equals a a margin of the 20%
• ⚠️ Not including all the costs indirectos: insurance, gestoría, fuel, desgaste of tools propias
• ⚠️ Calculate the profit without Consider the taxes (IRPF or Impuesto of Sociedades) that reduces the profit net
• ⚠️ Forget that a margin low (5-10%) in construcción is muy arriesgado per the alta probability of contingencies
• ⚠️ Not review the margin target según the rate of project: más margin in renovations pequeñas, less in project pública

Worked example

Calculate margin for 100 EUR cost with 30% markup.

Results: {beneficio_eur} € of profit, margin of the {margen_pct} % over price of sale, markup of the {markup_pct} % over cost.

Input guide