Markup and margin, side by side
Enter your cost and one other number. You get the selling price, profit, markup and margin.
Selling price
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- Profit
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- Markup (profit ÷ cost)
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- Margin (profit ÷ price)
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Markup and margin are not the same
Markup is profit as a share of cost. Margin is profit as a share of the selling price. A 50% markup on a $40 cost sells at $60, which is only a 33.3% margin.
Which should I use to price a job?
Use markup if you start from cost and add a percentage. Use margin if you want profit to be a set share of what the client pays. Mixing them up is an easy way to underprice a job.