Free calculator

Markup vs margin calculator

A 50% markup is not a 50% margin, and mixing them up quietly costs you money. Enter your cost and either number. See the price and the other number.

What the job or item costs you.
Fill in the markup or the margin, not both.

The difference

Markup is profit divided by cost. Margin is profit divided by price. Because the price is bigger than the cost, margin is always the smaller number: a 100% markup is only a 50% margin, and a 25% markup is a 20% margin.

Work you can look at

Questions people ask

How do I get a 50% margin?

Mark the cost up by 100%. Charge double what it costs you.

Which should I use to price jobs?

Decide on the margin you need, because it is what is left to cover overhead and profit. Then convert it to a markup if your price sheet works in markup.

Is this financial, legal or tax advice?

No. It is a free estimate to help you plan and to start a conversation with your lender, accountant or advisor. Check the real figures with them before you decide.

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This is an estimate for planning, not financial, legal or tax advice.

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