Free tool
Markup and margin calculator
Enter your cost and any one of markup, margin or selling price. The calculator fills in the other three, so you can see what a markup actually earns you as a margin.
Price and profit
$150.00selling price on $100.00 of cost
- Profit
- $50.00
- Markup
- 50%
- Margin
- 33.33%
Markup divides profit by cost; margin divides it by price.
Cost $100.00, price $150.00: profit $50.00, markup 50%, margin 33.33%.
How it's calculated
- Profit = price − cost
- Markup % = profit ÷ cost × 100
- Margin % = profit ÷ price × 100
- Price from markup = cost × (1 + markup)
- Price from margin = cost ÷ (1 − margin)
- Margin = markup ÷ (1 + markup); markup = margin ÷ (1 − margin)
How to use it
- 1Enter your cost. Use your full cost for the item or job: materials, labor and anything else you pay to deliver it.
- 2Choose what you know. Pick markup, margin or selling price, depending on what you're starting from.
- 3Enter the figure. Type the markup %, the margin % you want, or the price you're charging.
- 4Read all four numbers. The results show price, profit, markup and margin together, so you can quote the price and check the margin.
Worked example
A part costs you $100 and you mark it up 50%.
- Price = $100 × 1.50 = $150
- Profit = $150 − $100 = $50
- Margin = $50 ÷ $150 = 33.33%
A 50% markup sells the part for $150 and earns a 33.33% margin, not 50%. To earn a 50% margin you'd need a 100% markup ($200).
Sources
- FDIC and U.S. Small Business Administration, Money Smart for Small Business, Module 8: Profitability (participant guide, FDIC-029-2025). Accessed 2026-11-03.
Gross profit is revenue minus the cost of goods sold; net profit subtracts overhead as well. Profit margin = net profit ÷ revenue, shown as a percentage.
FAQ
Markup and margin calculator questions
Have a question we didn't cover? Book a demo and ask a product specialist.
What's the difference between markup and margin?
Both use the same dollars of profit. Markup divides that profit by your cost; margin divides it by the selling price. Because price is always bigger than cost, the margin percentage is always smaller than the markup percentage.
What markup do I need for a 50% margin?
100%. Doubling your cost gives a price where half is profit. For a 30% margin you need a 42.9% markup, and for 40% you need 66.7%.
Why does mixing them up cost money?
If you want a 30% margin but add a 30% markup, you earn about 23%. On $100,000 of work that's roughly $7,000 less profit than you planned.
Should I use markup or margin when I price jobs?
Many contractors set targets as a margin, because overhead and profit are easier to plan as a share of revenue, then convert to a markup for quick pricing. This calculator does the conversion either way.
Can margin be 100% or more?
No. A margin of 100% would mean the item cost nothing. Markup has no ceiling, but margin always stays under 100%.
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