Pricing & Bids

Material Markup Policy

Calculate a material markup that actually covers your payment-terms float and price-volatility risk, not a guessed handling fee.

Material cost per job$Payment terms gapdaysAnnual financing rate%Risk buffer%

Recommended markup5.7%

Recommended material price$3,698.01

Float cost component0.7%

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Next Decision

Based on your results, these related decisions are available.

Deposit Policy Impact on Cash & RiskUse your recommended material markup to check whether your deposit policy actually covers it.

Methodology

Formula: Float cost % = (payment terms gap days / 365) × annual financing rate. Recommended markup = float cost % + risk buffer %. Recommended price = material cost × (1 + markup).

Assumption: The markup is built from two named, editable assumptions, not one arbitrary round number.

Limitation: Does not model actual price volatility events, the risk buffer is a flat assumption you set directly.