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Markups & Profit Margins

Configure your markup percentages and failure rate to build profitable pricing

Overview

The Pricing & Risk card is a collapsible section in the calculator. It contains three fields — Filament Markup (multiplier), General Markup (percentage), and Failure Rate (percentage). These markups are added on top of your base costs and appear as the green "Profit" section in the results breakdown.

Tip: This section is collapsed by default. Click to expand, or turn on Advanced mode (top-left) to auto-expand all collapsible sections.

Filament Markup Multiplier

What Is the Filament Markup?

A multiplier applied to your raw filament cost. The default is 2.7×, meaning you charge 2.7 times what you paid for the material. The "extra" portion (1.7× in this case) shows as Filament Markup in the green Profit section of the results.

Example:
• Filament cost: $20/kg
• Print uses: 100 g (0.1 kg)
• Base material cost: $2.00 (shown in red Costs section)
• Markup value: $2.00 × (2.7 − 1) = $3.40 (shown in green Profit section)
• Customer pays for filament: $2.00 + $3.40 = $5.40

Why 2.7×?

This industry-standard multiplier accounts for:

  • Material Waste: Support structures, purging, failed prints (~15–20%)
  • Storage Costs: Proper humidity control, organisation
  • Inventory Management: Time spent tracking and ordering
  • Material Profit: Reasonable margin on materials

When to Adjust

Increase (3×–4×) for:

  • • Specialty filaments (carbon fibre, flexible)
  • • Expensive materials (PEEK, PC, PA)
  • • Hard-to-source or imported materials
  • • Materials requiring special storage

Decrease (2×–2.5×) for:

  • • Bulk orders using the same material
  • • High-volume customers
  • • Common materials (basic PLA, PETG)
  • • Competitive pricing situations

General Markup Percentage

What Is the General Markup?

A percentage applied to your total base costs (depreciation + filament base + electricity + labour). The default is 50%. The resulting amount shows as "General Markup" in the green Profit section.

Formula: Total Base Costs × (General Markup % ÷ 100)
Example:
• Total base costs: $30.00
• General markup: 50%
• Markup value: $30 × 0.50 = $15.00

What Does It Cover?

  • Overhead: Rent, utilities, insurance, software subscriptions
  • Business Ops: Marketing, customer service, accounting
  • Maintenance: Regular printer maintenance, repairs, upgrades
  • Profit: Your actual take-home earnings
  • Growth Capital: Funds for expanding your business

Markup Guidelines

Hobbyist / side business20%–35%
Small business40%–60%
Full-time professional50%–75%
Premium / specialised service75%–100%+

Important: Don't be afraid to charge appropriate markups. Your expertise, equipment, and service have real value.

Failure Rate (Buffer)

What Is the Failure Rate?

A percentage that adds a buffer to cover prints that fail and need to be redone. The default is 10%. It's applied to the sum of all base costs and the other two markups.

Formula: (Total Costs + Filament Markup + General Markup) × Failure Rate %
Example:
• Total costs: $30.00
• Filament markup: $3.40
• General markup: $15.00
• Sum: $48.40
• Failure buffer: $48.40 × 10% = $4.84

Why Include a Failure Buffer?

Even experienced operators have prints fail. This buffer helps cover:

  • First Layer Fails: Adhesion issues, bed levelling problems
  • Mid-Print Failures: Clogs, power outages, spaghetti
  • Quality Issues: Warping, layer separation, defects
  • Client Rejections: Dimensional accuracy, colour mismatch

Setting Your Rate

Expert (reliable setup)5%–8%
Experienced (standard materials)8%–12%
Beginners or difficult prints12%–20%
Experimental / new materials15%–25%

Tip: Track your actual failure rate over time and adjust this setting to match. Be honest with yourself about how often prints fail.

Complete Calculation Flow

How Everything Works Together

Costs (red section in results)
• Printer Depreciation
• Filament (Base)
• Electricity
• Labour
= Fees / Total Costs
Profit (green section in results)
• Filament Markup = Base Filament × (Multiplier − 1)
• General Markup = Total Costs × (Markup% ÷ 100)
• Failure Buffer = (Costs + Fil. Markup + Gen. Markup) × (Failure% ÷ 100)
= Profit / Total Markups
Total Price
Total Costs + Total Markups = your recommended selling price.

Best Practices

Review Regularly

Check your actual failure rates and profitability quarterly. Adjust markups as your costs change.

Be Consistent

Use the same markups for similar jobs. This creates predictable pricing for you and your clients.

Save as Presets

Create presets with different markup strategies for different client types or job categories.

Don't Compete on Price Alone

Maintain healthy markups. Compete on quality, reliability, and service instead of racing to the bottom.

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