Markup and margin calculator
Markup and margin sound alike and are not the same. Enter your cost with either one to get the price, or enter a cost and a price to see both.
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The numbers
Enter your cost and a markup to see the rest.
How it works
- Markup is the profit as a percentage of your cost. Margin is the profit as a percentage of the price you charge.
- For the same job the markup is always bigger than the margin: a markup of 100% is a margin of 50%.
- To get a margin, the price is the cost divided by one minus the margin. To get a markup, the price is the cost times one plus the markup.
- The results are rounded to the cent, and the percentages to one decimal place.
Tips
- Decide which one you are talking about before you compare numbers with someone else. A 30% margin is not a 30% markup.
- Include everything the job costs you in the cost: materials, your time, helpers, fuel and the small stuff.
- Use this on a single line, or on a whole job's cost.
Or let QuoteDash do the sums
QuoteDash keeps what each item costs you on a cost list that customers never see, and shows the margin as you build a quote and the profit on every job.
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Questions
- What is the difference between markup and margin?
- Both are profit as a percentage. Markup is measured against your cost, and margin against the price you charge, so the margin is always the smaller number.
- Which should I use to price a job?
- Either works if you stay consistent. Some people think in markup when they price, and in margin when they look at what a job earned.
- Can a margin be 100%?
- No. A margin below 100% is the most you can have, because the cost is always part of the price.