Markup Calculator
Convert between cost, markup, margin and selling price — and see why they're not the same thing.
Markup vs Margin — comparison table
| Markup % | Equivalent Margin % |
|---|
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Markup vs margin — and why the difference matters
Markup is profit calculated as a percentage of cost. Margin is profit calculated as a percentage of selling price. They sound similar and get mixed up constantly — but a 20% markup and a 20% margin produce very different prices and very different profit.
How to use it
- Choose whether you know your markup %, your margin %, or your final selling price.
- Enter your cost price and the number you know.
- The calculator solves for everything else — selling price, profit, markup and margin.
The formulas
Worked example
A job costs $100. Add a 20% markup and the price is $120 — but that $20 of profit is only 16.7% of the $120 selling price, so your margin is 16.7%, not 20%. To actually get a 20% margin, you'd need to charge $125 (a 25% markup).
Frequently Asked Questions
What's the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by selling price. Because selling price is always higher than cost, margin is always a smaller percentage than markup for the same job.
Which one should I use to price jobs?
Most contractors find margin more useful because it tells you directly what share of your revenue is profit. Our job pricing calculator uses margin for this reason.
How do I convert markup to margin?
Margin % = Markup % ÷ (100 + Markup %) × 100. For example, a 50% markup equals a 33.3% margin.