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Markup and margin
calculator.

Markup is on cost. Margin is on price. A 50% markup is a 33.33% margin, and a 20% margin is a 25% markup.

Your numbers

Labor, materials and anything else the job costs you.

Fill in this or margin. The other works itself out.

Under 100%: a margin of 100% has no price.

Your answer

Estimate

Fill in your numbers

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  • Your cost, still needed
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This is an estimate worked from the numbers you typed. It is not financial or legal advice.

Email me the price

  • Your price, markup and margin on one job
  • The profit it leaves in dollars
  • A sheet you can keep with the estimate
Jobs or deals a month
Spending on leads a month

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Reading the answer.

Markup on cost

What you add to your cost. It is the number you type into an estimate.

Margin on price

What you keep of the price. It is the number that shows on your profit and loss.

Same dollars, two numbers

The profit is one amount. Markup divides it by cost and margin divides it by price, so markup always reads higher.

The math.

A sample job costs $1,000 and is marked up 50%.

The formula

Margin from markup
markup / (1 + markup)
Markup from margin
margin / (1 − margin)
Price from markup
cost × (1 + markup)
Price from margin
cost / (1 − margin)

This is an estimate worked from the numbers you typed. It is not financial or legal advice.

The sample numbers

Your cost
$1,000
Markup on cost
50%
Margin on price
Worked out

What they come to

Price to charge
$1,500
Markup on cost
50%
Margin on price
33.33%
Profit on the job
$500

Your questions

Why is a 50% markup not a 50% margin?

Markup is measured on cost and margin on price. $500 on a $1,000 cost is 50% of the cost and 33.33% of the $1,500 price.

What markup gets me a 30% margin?

About 42.86%. Divide the margin by 1 minus the margin: 0.30 / 0.70.

Can a margin reach 100%?

No. That would mean a job with no cost at all, so the math has no price. A markup has no such limit.

Which number should go in my estimates?

Set the margin you need to keep, then let this page give you the markup to apply to cost. Going the other way is how a job priced at 30% markup ends at a 23% margin.

More tools.

Labor rate calculator

Add overhead to payroll with burden, divide by billable hours to break even, then divide by 1 minus your target net to get the rate to charge.

Lead cost calculator

Divide what a lead source costs by the jobs it books, then set that against the profit on a job. If the profit is bigger, the source pays.

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