FAQ: Average Sales Margin/As Sold Margin (ASM)

Published on April 28, 2026 QuoteX

Overview: The Average Sales Margin (ASM) -also known as the As Sold Margin- measures project profitability in QuoteX. This guide covers the core formula, variable components, project-type variances, and configuration factors affecting the calculation.

The Core ASM Formula

Regardless of the discount model being used in your project, the fundamental calculation for the Average Sales Margin remains constant:

ASM = 1 - (Total Cost / (Total Fees - Total Discount))

Components of the Calculation

To accurately understand the final margin calculation, consider the three primary variables:

1. Total Fees: The cumulative sum of all resource fees.

• Time & Materials (T&M): Includes total resource fees plus any billable other fees and expenses.

• Fixed Fee: Includes total resource fees and may also incorporate a Fixed Fee Buffer Amount.

2. Total Cost: The total project expenditure, which varies based on the project type:

• Fixed Fee Projects: Services Uplifted Costs + (Other Costs if enabled) + (T&E if enabled).

• Time & Materials (T&M) Projects: Service Costs + (Other Costs if enabled) + (T&E if enabled).

3. Total Discount: The combined total of all discounts applied at either the Timeline Level (overall project scope) or the Header/Resource Level (individual line items).

Key Factors Impacting Margin Calculation

Several configuration choices and user actions directly alter the calculated ASM:

• Impact Flags: When creating a timeline, manually enable flags to include Other Costs and Travel & Expense (T&E) in the ASM calculation. When turned on, these expenses are factored directly into the Total Cost variable.

• Real-Time Updates: Updating values in the Disc % (Discount Percentage) field triggers an immediate recalculation of the ASM in the timeline overview.

• Third-Party Margins: For third-party services or vendors requiring an added margin fee, enter a higher value in the Total Fees cell relative to the Total Costs cell. The system retains this difference as a margin and rolls it up into overall quote totals.

• Calculation Breakdown: When the Cost Impact ASM flag is enabled, hover your cursor over the Net Fees summary in the timeline overview to inspect a detailed fee breakdown contributing to the formula.

Knowledge Article Number: KA-00234