# How to calculate a quote?

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### How to calculate a quote?

To obtain it, you must add the direct costs and the indirect costs of the product in question, then divide these by the quantities produced. So the formula used is: **Calculation** cost price = sum of direct and indirect costs / quantities produced.

### How to calculate a company’s margin?

It makes it possible to evaluate the profit generated by the economic activity of the company. It also allows the company to position itself in relation to the competition. How to calculate your margin? As we saw earlier, the margin is the difference between the buying price and the selling price.

### What is Trade Margin?

The commercial margin or gross margin of the company. The company’s trading margin, also known as gross profit, is what the company earns from the difference between the sales price excluding tax and the purchase price excluding tax of the products sold.

### How to calculate the margin rate?

Difference between margin rate and markup rate. Even if their denomination is very similar, the margin rate and the markup rate should not be confused. The markup is used to calculate the part of the commercial margin included in a sale price. Markup rate = ((selling price excluding tax – purchase price excluding tax) / selling price excluding tax) X 100.

### How to follow the profit margin of a company?

A company’s trading margin is a very important financial indicator, especially in trading activities. Margin monitoring incorporates several concepts: gross margin, net margin, margin rate and markup rate.