Markup and margin calculator
Type your cost, then a markup, a margin or a selling price. The other two fill in as you type.
Selling price
$0.00
Markup and margin are different numbers
Both start from the same profit: price minus cost. Markup divides that profit by the cost. Margin divides it by the price. The price is always bigger than the cost, so the margin is always the smaller number. Put a 30% markup on a $100 cost and you sell for $130. The $30 profit is 30% of the cost but only 23% of the price.
That gap catches people out. If your books say you need a 30% gross margin to cover overhead and you add 30% to your costs, you end up at 23% and come up short on every job. To get a 30% margin you have to mark up about 43%.
markup = (price - cost) / cost margin = (price - cost) / price price = cost x (1 + markup) = cost / (1 - margin) margin = markup / (1 + markup) markup = margin / (1 - margin)
Common markups and the margin they give
| Markup | Margin | Price on a $100 cost |
|---|---|---|
| 10% | 9.1% | $110.00 |
| 15% | 13.0% | $115.00 |
| 20% | 16.7% | $120.00 |
| 25% | 20.0% | $125.00 |
| 30% | 23.1% | $130.00 |
| 35% | 25.9% | $135.00 |
| 40% | 28.6% | $140.00 |
| 50% | 33.3% | $150.00 |
| 60% | 37.5% | $160.00 |
| 75% | 42.9% | $175.00 |
| 100% | 50.0% | $200.00 |
| 150% | 60.0% | $250.00 |
The markup you need for a margin
| Margin you want | Markup to add |
|---|---|
| 10% | 11.1% |
| 15% | 17.6% |
| 20% | 25.0% |
| 25% | 33.3% |
| 30% | 42.9% |
| 35% | 53.8% |
| 40% | 66.7% |
| 50% | 100.0% |
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