Line Item Calculations

Base Cost

The fundamental cost before any adjustments.

Base Cost = Quantity × Unit Price

Example:

Quantity: 10 hours
Unit Price: $150/hour
Base Cost: 10 × $150 = $1,500

With Variance

Base cost adjusted for risk/uncertainty.

With Variance = Base Cost × (1 + Variance%)

Example:

Base Cost: $1,500
Variance: 20%
With Variance: $1,500 × 1.20 = $1,800

Line Total (Final)

After applying profit margin.

Line Total = With Variance × (1 + Profit Margin%)

Example:

With Variance: $1,800
Profit Margin: 15%
Line Total: $1,800 × 1.15 = $2,070

Complete Formula

Line Total = Quantity × Unit Price × (1 + Variance%) × (1 + Profit Margin%)

Full Example:

Quantity: 10 hours
Unit Price: $150
Variance: 20%
Profit Margin: 15%

Line Total = 10 × $150 × 1.20 × 1.15 = $2,070

Quote Calculations

Subtotal

Sum of all line item totals.

Subtotal = Σ (Line Total for each item)

Example:

Line Item 1: $2,070
Line Item 2: $3,450
Line Item 3: $1,380
Subtotal: $6,900

Discount Amount

#### Percentage Discount

Discount = Subtotal × (Discount Percentage / 100)

Example:

Subtotal: $6,900
Discount: 10%
Discount Amount: $6,900 × 0.10 = $690

#### Fixed Discount

Discount = Fixed Amount (capped at Subtotal)

Example:

Subtotal: $6,900
Fixed Discount: $500
Discount Amount: $500

Quote Total

Quote Total = Subtotal - Discount

Example:

Subtotal: $6,900
Discount: $690
Quote Total: $6,900 - $690 = $6,210

With Tax (if applicable)

Tax Amount = (Subtotal - Discount) × Tax Rate
Total with Tax = (Subtotal - Discount) + Tax Amount

Example:

Pre-tax Total: $6,210
Tax Rate: 8%
Tax: $6,210 × 0.08 = $496.80
Final Total: $6,210 + $496.80 = $6,706.80

Payment Processing Fees

Credit Card (Stripe)

Card Fee = (Payment Amount × 0.029) + $0.30

Example:

Payment: $5,000
Fee: ($5,000 × 0.029) + $0.30 = $145.30

ACH Bank Transfer (Stripe)

ACH Fee = min(Payment Amount × 0.008, $5.00)

Example:

Payment: $5,000
Fee: min($5,000 × 0.008, $5) = min($40, $5) = $5.00
Payment: $500
Fee: min($500 × 0.008, $5) = min($4, $5) = $4.00

Platform Fee (Free Plan)

Platform Fee = Payment Amount × 0.01

Example:

Payment: $5,000
Platform Fee: $5,000 × 0.01 = $50

Net Amount Received

#### Business Absorbs Fees (Card)

Net = Payment - Card Fee - Platform Fee

Example:

Payment: $5,000
Card Fee: $145.30
Platform Fee: $50
Net: $5,000 - $145.30 - $50 = $4,804.70

#### Business Absorbs Fees (ACH)

Net = Payment - ACH Fee - Platform Fee

Example:

Payment: $5,000
ACH Fee: $5
Platform Fee: $50
Net: $5,000 - $5 - $50 = $4,945.00

#### Client Pays Fees (Gross-Up, Card)

When fees are passed to the client, Tillage grosses up the charge so the business nets the full invoice.

Charge = (Invoice + Platform Fee + 0.30) / (1 - 0.029)
Business Net = Invoice

Example:

Invoice: $5,000
Platform Fee (1%): $50
Charge to client: ($5,000 + $50 + $0.30) / (1 - 0.029) ≈ $5,201.13
Business receives: $5,000.00

#### Client Pays Fees (Gross-Up, ACH)

Charge = Invoice + Platform Fee + ACH Fee (capped at $5)
Business Net = Invoice

Example:

Invoice: $5,000
Platform Fee (1%): $50
ACH Fee: $5
Charge to client: $5,055.00
Business receives: $5,000.00

Convenience Fees

Percentage-Based

Convenience Fee = Invoice Amount × Fee Rate
Client Pays = Invoice Amount + Convenience Fee

Example:

Invoice: $5,000
Fee Rate: 3%
Convenience Fee: $5,000 × 0.03 = $150
Client Pays: $5,150

Fixed Amount

Convenience Fee = Fixed Fee Amount
Client Pays = Invoice Amount + Convenience Fee

Example:

Invoice: $5,000
Fixed Fee: $10
Client Pays: $5,010

Payment Schedule Calculations

Percentage-Based Milestones

Milestone Amount = Quote Total × Milestone Percentage

Example:

Quote Total: $10,000
Deposit (50%): $10,000 × 0.50 = $5,000
Final (50%): $10,000 × 0.50 = $5,000

Equal Installments

Installment Amount = Quote Total / Number of Installments

Example:

Quote Total: $12,000
Installments: 4
Each Payment: $12,000 / 4 = $3,000

Cost Calculations

Tillage is free ($0/month), so there is no subscription breakeven to calculate. Your only cost is the 1% platform fee plus Stripe processing on payments you collect through Tillage — and you can pass those to clients.

Platform Fee Cost (Business Absorbs)

Monthly Platform Fee = Monthly Payment Volume × 0.01

Example:

Monthly Volume: $10,000
Platform Fee: $10,000 × 0.01 = $100

Cost When Fees Are Passed to Clients

Business Cost = $0 (client covers platform + processing fees)

Example:

Monthly Volume: $10,000
Fees passed to clients
Business Cost: $0

Variance Recommendations

Risk Level	Variance Range	Use Case
Low	5-10%	Repeat projects, clear scope
Standard	10-15%	Typical projects
Moderate	15-20%	New clients, some unknowns
High	20-30%	Complex requirements
Very High	30-50%	Experimental, unclear scope

Quick Reference Table

Calculation	Formula
Base Cost	Qty × Price
With Variance	Base × (1 + Var%)
Line Total	WithVar × (1 + Margin%)
Quote Total	Σ Lines - Discount
Card Fee	Amount × 2.9% + $0.30
ACH Fee	min(Amount × 0.8%, $5)
Platform Fee	Amount × 1% (Free only)

Related: Profitability Features | Variance Buffers Guide | Glossary