Proposal Pricing Calculator
Build a service proposal price from internal delivery cost, expenses, contingency and target profit margin.
Price a service proposal
Estimate delivery cost first, then add contingency and solve for a target margin.
How the calculation works
Base delivery cost = estimated hours × loaded cost per hour + project expenses. Contingency increases that cost by the entered percentage. Target proposal price = cost including contingency ÷ (1 − target margin).
How to use the result
Use the output as a financial floor or reference before applying value-based pricing, strategic discounts, scope risk and commercial judgment. Explicit contingency can reduce the temptation to hide uncertainty inside an inflated hour estimate.
Assumptions and limitations
Estimate accuracy depends on scope quality and the internal cost rate. The model does not automatically include taxes, payment fees, sales commission, bad debt or change requests unless those are represented in the inputs.
Example
A 30% target margin requires a higher price than applying a 30% markup to cost because margin uses selling price as its denominator.