Pricing & business / Markup and margin
Markup and margin calculator
Price from your cost with a markup or a margin, or check what your current price really makes.
Your price / USD
Selling price
Enter cost.
Markup and the margin it gives
| Markup | Margin |
|---|---|
| 10% | 9.1% |
| 15% | 13% |
| 20% | 16.7% |
| 25% | 20% |
| 30% | 23.1% |
| 40% | 28.6% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50% |
How it works
Put in your numbers
Use your own rates, times and measurements.
See your answer straight away
It works it out as you type.
Copy or print it
Send it on, or keep it with the job.
What it covers: Turn a cost into a price, and see the markup and margin side by side.
Free to use. No sign-in needed.
How to work out markup and margin
Markup and margin both describe the gap between what something costs you and what you sell it for, but they measure that gap against different numbers. Mixing them up is an easy way to underprice. This calculator turns your cost into a price from a markup, a margin or a selling price, and shows the markup and margin side by side.
- Start with your true cost for the item or job. Include the purchase price plus delivery or any other cost you pay to get it.
- Choose how to work out the price: from a markup percentage, a margin percentage or a selling price you already have in mind.
- Markup is profit as a percentage of cost. For example, a cost of 100 with a 50% markup gives a price of 150.
- Margin is profit as a percentage of the selling price. With a price of 150 and a cost of 100, the profit is 50, so the margin is 50 divided by 150, about 33%.
- Check both figures in the results. Make sure the margin is enough to cover your overheads and profit, not just the cost of the item.
Tips and common mistakes
- A 30% markup is not a 30% margin. If you need a certain margin, the markup has to be higher than that number.
- Margin can never reach 100%, but markup can be any size. If someone talks about a margin above 100%, they mean markup.
- Use one method across your quotes and price lists so you and your team are not mixing the two up.
- Discounts come off the selling price, so they cut your margin faster than you might expect. Check the margin after any discount.
Questions
What is the difference between markup and margin?
Markup is your profit divided by your cost. Margin is your profit divided by your selling price. The same sale always has a higher markup percentage than margin percentage, because cost is smaller than price.
How do I convert markup to margin?
Divide the markup by 100 plus the markup. For example, a 50% markup is 50 divided by 150, which is a margin of about 33%. To go the other way, divide the margin by 100 minus the margin.
How do I calculate a selling price from a margin?
Divide your cost by one minus the margin as a decimal. For a 25% margin on a cost of 60, that is 60 divided by 0.75, which gives a price of 80. Choose 'A margin %' in the calculator and it does this for you.
What markup should I put on materials?
There is no single right number. Your markup needs to cover the time spent ordering, collecting and storing materials, the risk of waste or returns, and a share of your overheads. Set it from your own costs, then check it against what your customers will accept.
Is markup the same as profit?
Not quite. Markup is the gap between price and cost on one item or job, but your overheads still have to come out of it. What is left after overheads is your actual profit.
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