Calculating an estimate is a math intensive process. STACK does the time consuming math for you, which reduces errors and increases accuracy. If you are curious, this article illustrates the formulas used for calculations on the Estimate worksheet.

**General Definitions **

**Adjusted Quantity** = Quantity + Waste Amount

**Extended Cost** = Adjusted Quantity * Unit Cost

**Total Markup Amount** = Extended Cost * Total Markup Percentage

**Overhead Markup** = Extended Cost * Overhead Markup Percentage

**Additional Markup** = (Extended Cost + Line Item Markup Amount + Overhead Markup Amount) * Additional Markup Percentage

**Total Markup** = Line Item Markup + Overhead Markup + Additional Markup

**Line Item Markup Amount** = Extended Cost * Line Item Markup Percentage

**Selling Price** = Extended Cost + Total Markup

**Tax Amount** = Selling Price * Tax Percentage

**Selling Price with Tax** = Selling Price + Tax Amount

**Gross Margin Percentage** = Total Markup / Selling Price

**Net Profit Amount** = Selling Price - Extended Cost - Overhead Markup

**Net Profit Percentage** = Net Profit Amount / Selling Price

**Summary by Key Unit **

**Selling Price per [Key Unit]** = Selling Price / Project Size

**Net Profit per [Key Unit]** = Net Profit amount / Project Size

**Detail by Key Unit **

**Extended Cost** = Extended Cost by Type / Project Size

**Total Markup** = Total Markup by Type / Project Size

**Selling Price** = Selling Price by Type / Project Size

**Net Profit** = Net Profit by Type / Project Size