Accountants Project Quote (Daily) Formula
Learn how to calculate an accounting project quote from workdays, a daily rate, expenses, contingency, discounts and tax.
This calculation turns a daily-rate estimate into a project quote. It starts with professional fees, adds recoverable costs and a contingency allowance, applies any discount, then calculates tax on the discounted amount.
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Total Project Quote
Where:
Multiply expected workdays by the daily rate, add expenses and contingency, deduct the discount, then add tax.
Variables Explained
| Variable | What It Means | Unit |
|---|---|---|
| estimatedDays - Estimated workdays | The expected number of chargeable working days for the project. | days |
| dailyRate - Daily rate | The fee charged for one working day. | currency |
| projectExpenses - Project expenses | Total project-specific costs to include in the quote. | currency |
| contingencyRate - Contingency allowance | Percentage added to fees and expenses for uncertainty or delivery risk. | percent |
| discountRate - Discount | Percentage deducted from the subtotal before tax. | percent |
| taxRate - Tax rate | Entered VAT, GST, sales tax or similar rate applied after the discount. | percent |
Step-by-Step Calculation
Calculate professional fees
Estimate the core fee using chargeable days and the daily rate.
professionalFees = estimatedDays * dailyRate
Calculate the contingency allowance
Apply the contingency percentage to professional fees plus project expenses.
contingencyAmount = (professionalFees + projectExpenses) * (contingencyRate / 100)
Find the pre-discount subtotal
Combine fees, expenses and contingency.
subtotalBeforeDiscount = professionalFees + projectExpenses + contingencyAmount
Calculate the discount
Work out the reduction from the pre-tax subtotal.
discountAmount = subtotalBeforeDiscount * (discountRate / 100)
Calculate the quote before tax
Subtract the discount before calculating tax.
quoteBeforeTax = subtotalBeforeDiscount - discountAmount
Calculate tax and total quote
Apply the entered tax rate to obtain the total client charge.
totalQuote = quoteBeforeTax * (1 + taxRate / 100)
Example: 10-day accounting systems project
Professional fees
10 * 600
$6,000
Contingency amount
(6000 + 300) * 10 / 100
$630
Subtotal before discount
6000 + 300 + 630
$6,930
Quote before tax
6930 - 0
$6,930
Tax amount
6930 * 20 / 100
$1,386
Total project quote
6930 + 1386
$8,316
Final Result
Estimated total project quote: $8,316, including $1,386 in tax.
Assumptions
- ✓Every estimated workday is chargeable at the same daily rate.
- ✓Project expenses are included as one total amount.
- ✓Contingency is calculated before the discount.
- ✓The discount is applied before tax.
- ✓The entered tax rate applies to the whole quote before tax.
Limitations
- !The result does not determine whether a particular expense or service is taxable.
- !Actual workdays may change if records, requirements or review rounds change.
- !The calculator does not account for payment schedules, deposits, late-payment charges or financing costs.
- !A project quote should be checked against the final scope, exclusions and engagement terms.
Common Mistakes to Avoid
Using calendar days instead of expected chargeable working days.
Leaving out travel, software, filing or subcontractor costs.
Applying the contingency only to fees when the intended basis includes expenses.
Entering a tax rate without confirming how tax applies to the service and client.
Applying a discount after tax when the intended pricing method is discount before tax.
Related Formulas
Frequently Asked Questions
What is the formula for a daily-rate project quote?
Add daily-rate professional fees, expenses and contingency, deduct any discount, then apply the entered tax rate.
How are professional fees calculated?
Professional fees equal estimated chargeable workdays multiplied by the daily rate.
Is contingency added before or after the discount?
In this calculator, contingency is added before the discount. The discount is then calculated on the resulting subtotal.
Is tax calculated before or after the discount?
The calculator calculates tax after the discount. Tax treatment may vary, so confirm the appropriate treatment for the engagement.
Can a project quote include expenses?
Yes. Enter recoverable project-specific expenses as a total, and they are added before contingency, discount and tax.
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