> ## Documentation Index
> Fetch the complete documentation index at: https://docs.qwoty.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Gross margin

> How Qwoty calculates the gross margin of a quote and where it's used

The gross margin tells you how much a quote earns once the cost of the products is deducted. Qwoty shows it to your sales team in the quote editor and uses it in approval workflows.

## Where you see it

Open a quote: the **Gross margin** panel in the sidebar (**Home** tab) shows the margin as a percentage and as an amount, for example `32 % · €1,600.00`. It updates as you edit lines, prices, and discounts.

The margin is never shown to your customer.

> [!NOTE]
>
> The **Gross margin** panel is enabled per organisation. If you don't see it, contact Qwoty support.

## How it's calculated

For each line of the quote:

* **Line margin** = (final net unit price − cost price) × quantity
* The final net unit price includes line discounts and the line's share of global discounts

Then, for the whole quote:

* **Margin amount** = sum of the line margins
* **Margin %** = margin amount ÷ sum of the lines' final net amounts × 100

The cost price comes from the product's price in the pricebook. Lines without a cost price count with a cost of 0, so their full amount counts as margin.

## Margin in approval workflows

Approval workflows can use **Margin** as a condition, for example to require a manager's approval when the margin drops below 20%. Qwoty compares the quote's margin percentage with the condition each time the quote changes. See [How approvals work](https://docs.qwoty.io/user-guide/workflows/reference/how-approvals-work.md).

## Related

> **[Create an approval workflow](https://docs.qwoty.io/user-guide/workflows/how-tos/create-approval-workflow.md)**
>
> Use the margin as an approval condition

> **[Pricing types](https://docs.qwoty.io/user-guide/catalog/reference/pricing-types.md)**
>
> Set cost prices in your pricebooks

> **[Apply a discount](https://docs.qwoty.io/user-guide/quotes/how-tos/apply-discount.md)**
>
> How discounts affect the margin

> **[Quote anatomy](https://docs.qwoty.io/user-guide/quotes/reference/quote-anatomy.md)**
>
> The quote editor sidebar


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