Free Tool
Free markup vs margin calculator
Enter your cost, then solve by markup, margin, or price. See all four at once, so you stop confusing the two and stop leaving money on the table. Free, no signup.
Markup is not margin
A 50% markup is only a 33% margin. Here is the conversion at common rates.
| If your markup is | Your margin is |
|---|
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Markup and margin are not the same
This is the mistake that quietly kills contractors. You mark a job up 50%, so you assume you keep 50%. You do not. A 50% markup is a 33% margin. Mark up by 20% and you keep about 17%.
Markup is profit measured against your cost. Margin is profit measured against the price. Same dollars, two different percentages, and the customer pays based on the price.
If you price off markup but think in margin, every job earns less than you planned. Do it all year and the gap is real money.
Enter your cost above and switch between the three modes. Want a 35% margin? Solve by margin and the calculator tells you the price and the markup to charge to get there.
Questions
What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by price. A 50% markup equals a 33% margin because the price is the bigger number.
What markup do I need for a 30% margin?
About 43%. Solve by margin, type 30, and the calculator shows the markup and price for you.
Is this really free?
Yes. No email, no signup, and nothing you type leaves your browser.
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