Markup and margin calculator
Work out what to charge. Enter your cost and one other number, and see the price, profit, markup and margin at once.
Markup vs margin, in one minute
Markup is profit as a share of your cost. Margin is profit as a share of the selling price. The same job has both numbers, and they are never equal.
Cost 1,000 and price 1,300 leaves a profit of 300. That is a 30% markup, but only a 23.1% margin.
| Markup | Margin you keep |
|---|---|
| 10% | 9.1% |
| 25% | 20.0% |
| 30% | 23.1% |
| 50% | 33.3% |
| 100% | 50.0% |
Which one to use
- Use markup when you build a price up from cost, for example materials plus 20%.
- Use margin when you check how much of the price you keep as profit.
- A 100% markup is only a 50% margin, so do not mix them up when you compare prices.
Common questions
What is the formula for markup?
Markup % = (price − cost) ÷ cost × 100. To go the other way, price = cost × (1 + markup ÷ 100).
What is the formula for margin?
Margin % = (price − cost) ÷ price × 100. To go the other way, price = cost ÷ (1 − margin ÷ 100).
What markup should a contractor use on materials?
It depends on your trade, your overhead and local competition, so there is no single right number. Work out your overhead first, then add a markup that covers it and leaves a profit. Our guide to pricing a job shows how.
