# Contract Manufacturer Job Quote Price Calculator

> Source: https://netray.co/tools/contract-manufacturer-job-quote-price-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Build a quote from material, setup hours, run time, outside processing and one time tooling, and see unit price fall as quantity rises.

## Category

cost-finance

## Audience

- Estimator
- Owner
- Sales

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Quote quantity

**Key:** qty

**Type:** slider

**Default:** 100

**Min:** 1

**Max:** 2000

**Step:** 1

**Unit:** units

#### Material per unit

**Key:** material_unit

**Type:** number

**Default:** 6.4

**Min:** 0

**Step:** 0.1

**Unit:** $

#### Setup hours

**Key:** setup_hrs

**Type:** number

**Default:** 2.5

**Min:** 0

**Step:** 0.25

**Unit:** hrs

#### Run time per unit

**Key:** run_min

**Type:** number

**Default:** 4.5

**Min:** 0

**Step:** 0.25

**Unit:** min

#### Machine and labor rate

**Key:** rate

**Type:** number

**Default:** 75

**Min:** 0

**Step:** 5

**Unit:** $/hr

#### Outside processing per unit

**Key:** outside_unit

**Type:** number

**Default:** 1.1

**Min:** 0

**Step:** 0.1

**Unit:** $

**Help:** Plating, heat treat, coating, per unit.

#### One time tooling or fixtures

**Key:** tooling

**Type:** number

**Default:** 400

**Min:** 0

**Step:** 50

**Unit:** $

#### Scrap allowance on quantity

**Key:** scrap_pct

**Type:** number

**Default:** 3

**Min:** 0

**Max:** 30

**Step:** 1

**Unit:** %

#### Target margin on price

**Key:** margin

**Type:** slider

**Default:** 30

**Min:** 0

**Max:** 70

**Step:** 1

**Unit:** %

**Outputs:**

#### Units to start

**Key:** make_qty

**Expr:** ceil(qty / (1 - scrap_pct / 100))

**Format:** integer

#### Material cost

**Key:** mat_total

**Expr:** make_qty * material_unit

**Format:** currency

#### Setup plus run cost

**Key:** labor_total

**Expr:** setup_hrs * rate + make_qty * run_min / 60 * rate

**Format:** currency

#### Outside processing cost

**Key:** outside_total

**Expr:** make_qty * outside_unit

**Format:** currency

#### Total cost

**Key:** cost_total

**Expr:** mat_total + labor_total + outside_total + tooling

**Format:** currency

#### Total quote price

**Key:** price_total

**Expr:** cost_total / (1 - margin / 100)

**Format:** currency

**Primary:** true

#### Unit price

**Key:** unit_price

**Expr:** price_total / qty

**Format:** currency

**Primary:** true

**Chart:**

#### Unit price vs quote quantity

**Type:** line

**X:** qty

**From:** 1

**To:** 2000

**Steps:** 40

**Series:**

- unit_price

**Disclaimer:** Excludes freight, packaging, payment terms and sales commission. Add these to a cost line before sending a quote.

## Content

**Intro:** Small shops quote dozens of jobs a week, and a missed setup or forgotten tooling charge can erase the margin. This calculator builds a quote from the real cost elements and shows the quantity price break.

**Sections:**

#### How to use it

**Body:** Enter the quantity and per unit material. Add setup hours and run time per unit, priced at your combined machine and labor rate. Include outside processing per unit and any tooling you will not reuse. Set the scrap allowance so the shop starts enough pieces to ship the quoted quantity, then choose the margin on price. The result is both the job total and a unit price.

#### The calculation

**Body:** Units to start equal quantity divided by one minus scrap, rounded up. Material and outside processing scale with started units. Setup is paid once, run time scales with started units. Total cost adds tooling, and price equals cost divided by one minus margin. Because setup and tooling are fixed, unit price falls as quantity rises.

**Bullets:**

- Setup and tooling are amortized over the quantity
- Scrap allowance matters most on small orders
- Margin is on price, not markup on cost
- Round prices up to the nearest sensible unit

#### Using the price break chart

**Body:** The curve is steep at low quantities and flattens near the variable cost. Read quantity breaks from the knee: the point where doubling quantity saves less than a few percent. Quote breaks at 1, 10, 50, 100, 500 and so on, and avoid offering a break below the quantity at which the cost curve is still steep.

#### Common mistakes

**Body:** Quoters often use a shop rate without setup, ignore the cost of rejects and quote tooling as free to win the order. Also verify the machine rate against actual hours; a rate that ignores idle time leads to quotes that lose money at real utilization.

**Cta:** Once quotes live in your ERP, Netray can compare quoted cost with actual job cost and show where estimates drift.

**Faq:**

#### Should I use margin or markup for quotes?

**Answer:** Margin on price is easier to compare with financial statements. A 30 percent margin equals a 42.9 percent markup on cost. Mixing the two is a common reason shops under price.

#### How do I price setup for repeat jobs?

**Answer:** If the setup is repeated each run, include it every time. If a fixture is kept, bill the tooling once and quote lower setup afterwards. Make the policy visible on the quote.

#### What scrap allowance is reasonable?

**Answer:** It depends on the process. Stable turned parts may run under 2 percent, while complex fabrications, castings or first articles can be 5 percent or more. Use your own history and revisit it quarterly.

#### Does the tool add freight and tax?

**Answer:** No. Add freight, packaging and any commission as extra cost before applying margin, and handle sales tax separately on the invoice.

## Search terms

job shop quote calculator, manufacturing quote price calculator, unit price by quantity break, how to quote a machined part, contract manufacturing quote template, setup cost amortization, quote price break calculator

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