What does margin fade really cost you?
Put in one job. See how a half-point slip here and there turns into lost profit, and how much extra work you'd need to win just to make it back.
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What the fade costs
- Profit you priced for
- £7,475
- Lose 2 points of margin and you lose
- £1,30017% of the profit
- Extra work you'd need to win to make it back
- £11,304
On a £65,000 job priced at 11.5%, every half-point of fade costs £325. Two points of fade means winning another £11,304 of work just to stand still.
Fade, step by step
Choose a row to show it in the figures above.
| Margin achieved | Profit | Profit lost | Share of profit lost | Extra work to recover |
|---|---|---|---|---|
| £7,475 | £0 | 0% | £0 | |
| £7,150 | £325 | 4% | £2,826 | |
| £6,825 | £650 | 9% | £5,652 | |
| £6,500 | £975 | 13% | £8,478 | |
| £6,175 | £1,300 | 17% | £11,304 | |
| £5,850 | £1,625 | 22% | £14,130 | |
| £5,525 | £1,950 | 26% | £16,957 | |
| £5,200 | £2,275 | 30% | £19,783 | |
| £4,875 | £2,600 | 35% | £22,609 | |
| £4,550 | £2,925 | 39% | £25,435 | |
| £4,225 | £3,250 | 43% | £28,261 | |
| £3,900 | £3,575 | 48% | £31,087 | |
| £3,575 | £3,900 | 52% | £33,913 | |
| £3,250 | £4,225 | 57% | £36,739 | |
| £2,925 | £4,550 | 61% | £39,565 | |
| £2,600 | £4,875 | 65% | £42,391 | |
| £2,275 | £5,200 | 70% | £45,217 | |
| £1,950 | £5,525 | 74% | £48,043 | |
| £1,625 | £5,850 | 78% | £50,870 | |
| £1,300 | £6,175 | 83% | £53,696 | |
| £975 | £6,500 | 87% | £56,522 | |
| £650 | £6,825 | 91% | £59,348 | |
| £325 | £7,150 | 96% | £62,174 | |
| £0 | £7,475 | 100% | £65,000 |
Across a year
Across 40 similar jobs a year, every 1 point of fade costs about £26,000.
- 1 point
- £26,000
- 2 points
- £52,000
- 3 points
- £78,000
Where does it fade?Optional. Estimate which leaks are eating the margin on this job.
Put in any leaks you know about to see how much margin they take.
Want to find where your margin fades?
I help fit-out companies find where they're losing money on every job, before the final account, so they keep more of the margin they priced for.
Figures are estimates based on what you entered. They're a guide, not financial advice.
Everything here is worked out in your browser from the numbers you type. Nothing is stored or sent unless you choose to email yourself a copy. Then the figures go to you and to Excend, and nowhere else.