BIZOMAT Tools · Quoting
Manufacturing Quote Builder
What should this manufacturing job be quoted at?
Builds a manufacturing quote from material, labour, machine time, overhead loading and target margin.
Open the calculatorRuns in your browser. No account needed.
How this tool works
Inputs, units and where to find them
| Input | Unit | Typical source |
|---|---|---|
| Order quantity | units | Order quantity |
| Material cost / unit | $/unit | Material cost per unit including scrap allowance |
| Total labour hours | hr | Total labour hours from the routing |
| Labour rate | $/hr | Loaded labour rate |
| Machine hours | hr | Total machine hours from the routing |
| Machine rate | $/hr | Machine hourly rate from finance |
| Overhead loading | % | Overhead loading on direct cost |
| Target gross margin | % | Target gross margin |
What each input means
Open an input to see what it is, its units, the worked example and the common mistakes, with a small diagram.
What this means: Order quantity
- What it is
- The number of units in the order being quoted. The quote total is divided by it to give the price per unit.
- Units and format
- Enter a number in units: a count of units. The form accepts 1 units or more.
- Example
- The form opens with 100 units as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Material scales with quantity; hours do not, so larger orders lower the price per unit.
- Get it right
- Labour and machine hours are totals for the whole order, so they must match this quantity.
What this means: Material cost / unit
- What it is
- The material cost of one finished unit, including an allowance for scrap and offcuts.
- Units and format
- Enter a number in $/unit: money per unit. The form accepts $0/unit or more.
- Example
- The form opens with $8/unit as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Multiplied by order quantity and added to direct cost.
- Get it right
- Add the scrap allowance; material that ends in the bin is still paid for.
What this means: Total labour hours
- What it is
- All labour hours needed for the whole order, including set-up, from the routing or estimate.
- Units and format
- Enter a number in hr: hours. The form accepts 0 hr or more.
- Example
- The form opens with 12 hr as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Multiplied by the labour rate and added to direct cost.
- Get it right
- This is the total for the order, not per unit. Include set-up time here if it is not quoted separately.
What this means: Labour rate
- What it is
- The cost of one hour of direct labour including on-costs such as superannuation, leave and payroll tax.
- Units and format
- Enter a number in $/hr: money per hour. The form accepts $0/hr or more.
- Example
- The form opens with $55/hr as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Multiplied by labour hours and added to direct cost.
- Get it right
- Use the loaded rate; if it already includes overhead, lower the overhead loading to avoid counting it twice.
What this means: Machine hours
- What it is
- All machine running hours needed for the whole order, including set-up time on the machine, from the routing.
- Units and format
- Enter a number in hr: hours. The form accepts 0 hr or more.
- Example
- The form opens with 8 hr as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Multiplied by the machine rate and added to direct cost.
- Get it right
- Total for the order, not per unit.
What this means: Machine rate
- What it is
- The cost of one hour of machine time: depreciation, energy, maintenance, tooling and floor space, from finance.
- Units and format
- Enter a number in $/hr: money per hour. The form accepts $0/hr or more.
- Example
- The form opens with $75/hr as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Multiplied by machine hours and added to direct cost.
- Get it right
- Do not include operator labour in the machine rate if it is already in labour hours.
What this means: Overhead loading
- What it is
- The loading added on top of direct material, labour and machine cost to cover indirect costs, as a percentage of direct cost.
- Units and format
- Enter a number in %: percent: the number is read as a percentage, so type 8 for 8 %. The form accepts 0% to 200%.
- Example
- The form opens with 15% as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Total cost = direct cost × (1 + overhead %).
- Get it right
- Type the percentage (15 for 15 %). Use the loading finance approves.
What this means: Target gross margin
- What it is
- The gross margin to earn on the order, as a percentage of the quoted price.
- Units and format
- Enter a number in %: percent: the number is read as a percentage, so type 8 for 8 %. The form accepts 0% to 95%.
- Example
- The form opens with 30% as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Quote = cost ÷ (1 − margin).
- Get it right
- Margin is a share of price, not a markup on cost. Values above 95 % are capped at 95 %.
Method and formulas
- Direct cost = quantity × material + labour hours × rate + machine hours × rate
- Cost = direct × (1 + overhead %)
- Quote = cost ÷ (1 − margin)
Limitations
- Set-up and tooling must be inside the hours or added separately
- Margin capped at 95%
Typical uses
- Quoting made-to-order parts
- Checking price breaks at different quantities
Who it is for
- Estimators in machining, fabrication and assembly businesses
What you get
- Quote total and per-unit price
- Cost build-up table
Interpreting the result
- If set-up is a large share, quote price breaks for larger quantities
BIZOMAT tools are screening and decision-support utilities. Verify important financial, engineering, safety, legal or operational decisions using appropriate professional standards and your organisation’s approved data.