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Markup vs margin calculator
Markup and margin are not the same number. Enter a cost and a price to see both. Or enter a target margin or markup to find the price. Free, runs in your browser, no sign-up.
Estimates only, from the numbers you enter. Not tax, legal or accounting advice. Example numbers are fictional.
The formulas
- Markup = (price minus cost) divided by cost.
- Margin = (price minus cost) divided by price.
- Price for a target margin = cost divided by (1 minus the margin). A margin must be below 100%.
- Price for a target markup = cost times (1 plus the markup).
A worked example
A cost of $100 sold at $150 is a 50% markup and a 33.33% margin. To earn a 30% margin on the same cost, the price is $142.86. A 25% markup gives $125.00, which is a 20% margin.
Why the two differ
Markup is measured on what you paid. Margin is measured on what the customer pays. The same $50 profit on a $100 cost is a 50% markup but only a 33% margin.
For a full job, see the job profit calculator and the help article on markup and margin.
See the profit on every job, automatically
ClearDesk IQ builds the estimate from your costs, shows the margin before you send it, and keeps forecasting profit as real costs come in.
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