Summary Multiplication Factors and Markup in SharpeSoft Estimator
- Dylan C
- Oct 8
- 2 min read
Simple Markup and Multiplication Factors
The best method to learning how and where markups are being applied in the Summary Sheet is a step-by-step overview of the entire process. In the screenshot below, we have reproduced the Summary Sheet from the video, in which our total estimate is composed of only job type costs, equaling $800,000.
We'll begin adding our markups to the job now. Let's say that we figured out we want to markup all of our permanent material by a total of $100,000. Note how the permanent material markup percentage field fills in automatically as well.
Some other values also filled in as soon as the markup was applied. Let's break them down now.
The highlighted field contains the sum total of our cost types ($800,000), the total cost type markup percentage, amount, and total with markup.
Total Cost Type Markup Percentage: Total Costs ($800,000) x Markup % (12.5%) = Total Cost Type Markup Amount ($100,000).
Now the system is adding the Total Cost Type Markup Amount to the Total Detail Costs, equaling $900,000.
The Total Cost Types field only summarizes cost types, therefore when you begin to enter markups in other fields, you will use the Overall Multiplication Factors field to determine how the system is applying markups instead.
Keep in mind: Nothing is required on the part of the user to solve these equations, the Estimator takes care of everything automatically!
Total markup amount now fills out, as well as the multiplication factor
But how is the multiplication factor calculated?
With one markup it's easy, it's just the same value as the total cost types markup percentage multiplied by the total cost types
More Complex Markups and Multiplication Factors
More complex markups? No problem. As mentioned above, we can use the same basic equation to make sure our totals are adding up, with a few minor changes. In this example, taken from the video, we've added another $50,000 in markups to the Bid Expense field.
The process is functionally the same, only now:
Total Detail Costs ($800,000) is being multiplied by Overall Multiplication Factor (18.75%), equaling $150,000.
Add Total Detail Costs to the Total Markup Amount to reach the Total Estimate sum ($950,000).
Further, we can find much the same by taking the Total Markup Amount ($150,000) and dividing it by the Total Estimate ($950,000) to find the Total Markup Percent (15.79%)
Conclusion
Getting started with SharpeSoft is a breeze. Whether you are looking to create a new job or add one, SharpeSoft has got your back. We have the tools and expertise necessary to help you make it happen without breaking a sweat.
You can continue on to other helpful Fast Trax articles found in the Blog section. To learn more about this particular subject, consult your system Help manual, or just give us a call and we’ll be glad to walk you through it.
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