How the rate is worked out
For a margin, the rate is cost divided by one minus the margin, so the profit is that share of the price. For a markup, the rate is cost times one plus the markup. The calculator shows the profit per unit and both percentages, so you can check a rate whichever way you think about it.
Using it on a quotation
Work out your cost per unit for each item, such as per sq ft of wardrobe or per running foot of kitchen, then the rate to quote. Interior Quote lets you keep a private cost note on each line that never appears on the quotation, so you can check the margin while you quote. To price the whole room, use the interior design cost calculator.
Questions
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of your cost. On a cost of ₹1,200 and a price of ₹1,600, the profit of ₹400 is a 25% margin and a 33.3% markup.
How do I calculate a selling rate from cost and margin?
Divide the cost by one minus the margin. For a 25% margin on a cost of ₹1,200, the rate is 1,200 ÷ 0.75 = ₹1,600.
How do I calculate a selling rate from cost and markup?
Multiply the cost by one plus the markup. A 25% markup on ₹1,200 is 1,200 × 1.25 = ₹1,500.
Should tax be in the cost?
Work out your rate on the cost before tax, then add GST or VAT on the quotation. If you are not registered and cannot claim input tax, include the tax you pay on materials in your cost.