Quote to Cash Margin Calculator

About this calculator

Quote-to-cash (QTC) is the end-to-end business process that runs from generating a sales quote through configuring and pricing a deal, getting it approved, closing it, and finally collecting payment. This calculator focuses on one critical checkpoint in that process: the true net margin left on a quoted deal after everything that eats into revenue is deducted.

Starting from the quoted (list) price, the calculation subtracts any discount offered to win the deal, then subtracts the cost of goods sold (COGS) — what it actually costs to deliver the product or service — and finally subtracts sales commission paid on the deal, leaving the real profit margin the company keeps.

Sales operations teams, deal desks, and finance/CFO teams use this kind of margin check before approving a discount, since a salesperson chasing a big discount to close a deal faster can unknowingly push a deal's margin down to an unprofitable level once commission and COGS are factored in — this calculator makes that true margin visible before the deal is signed.