Markup Calculator: Markup, Margin and Selling Price
Enter your cost and a markup, a margin or a selling price. It works as a margin calculator too, giving the price, the profit, the markup and the margin at once, so the price on your quote earns what you meant it to.
- Profit
- $100.00
- Markup
- 25.0%
- Margin
- 20.0%
A 25% markup on a $400 cost gives a $500 price and a 20% margin.
Put this price on a quoteMarkup to margin conversion table
The same profit looks bigger as a markup than as a margin. Use this table to see what each markup really earns as a share of the selling price.
| Markup | Margin | Price on a $100 cost | Profit |
|---|---|---|---|
| 5% | 4.8% | $105.00 | $5.00 |
| 10% | 9.1% | $110.00 | $10.00 |
| 15% | 13.0% | $115.00 | $15.00 |
| 20% | 16.7% | $120.00 | $20.00 |
| 25% | 20.0% | $125.00 | $25.00 |
| 30% | 23.1% | $130.00 | $30.00 |
| 33.3% | 25.0% | $133.33 | $33.33 |
| 40% | 28.6% | $140.00 | $40.00 |
| 50% | 33.3% | $150.00 | $50.00 |
| 60% | 37.5% | $160.00 | $60.00 |
| 75% | 42.9% | $175.00 | $75.00 |
| 100% | 50.0% | $200.00 | $100.00 |
| 150% | 60.0% | $250.00 | $150.00 |
| 200% | 66.7% | $300.00 | $200.00 |
Margin = markup / (100 + markup). A 33.3% markup gives a 25% margin, and a 100% markup gives a 50% margin.
Markup formula and margin formula
Four formulas cover every pricing question. Each one is worked through on a $400 cost.
- Price from a markupPrice = cost x (1 + markup). $400 x 1.25 = $500.
- Price from a marginPrice = cost / (1 − margin). $400 / 0.80 = $500.
- Markup from cost and priceMarkup = (price − cost) / cost. (500 − 400) / 400 = 25%.
- Margin from cost and priceMargin = (price − cost) / price. (500 − 400) / 500 = 20%.
In these formulas the minus sign is arithmetic: price less cost. Percentages are written as decimals inside the sums, so 25% is 0.25.
Cost plus pricing on a quote
Cost plus pricing adds a set markup to each cost line. It is simple to explain to customers and easy to check, which is why trades use it for materials and subcontracted work.
| Line | Cost | Markup | Price |
|---|---|---|---|
| Timber and fixings | $1,200.00 | 20% | $1,440.00 |
| Electrician, subcontracted | $900.00 | 15% | $1,035.00 |
| Skip hire | $350.00 | 10% | $385.00 |
| Total | $2,450.00 | $2,860.00 |
The blended markup here is $410 on $2,450, about 16.7%, which is a margin of about 14.3%. If your overheads take 15% of sales, this job only just breaks even, so check the margin before you send. The materials markup and how to price a job guides go further.
Markup calculator questions
Short answers first. Something missing? Ask us.
How do I calculate markup?
Markup is profit divided by cost. If a job costs $400 and you charge $500, the profit is $100, so the markup is 100 / 400 = 25%. To find a price from a markup, multiply the cost by one plus the markup: $400 x 1.25 = $500.
What is the difference between markup and margin?
Markup compares profit with cost, margin compares profit with the selling price. The same $100 profit on a $400 cost is a 25% markup but only a 20% margin. The markup vs margin guide explains when to use each.
How do I find the selling price from a margin?
Divide the cost by one minus the margin. For a 30% margin on a $700 cost: 700 / 0.70 = $1,000. Check it: $300 profit on a $1,000 price is 30%.
What markup should I use?
It depends on your overheads, your market and the risk in the work. Work out the margin you need to cover overheads and profit, then convert it to a markup with the table on this page. The overhead guide shows how.
Is a 50% markup the same as a 50% margin?
No. A 50% markup on a $100 cost gives a $150 price and a 33.3% margin. A 50% margin needs a 100% markup, a $200 price on the same cost.
Does the calculator include tax?
No. Markup and margin are worked out before tax. Add GST, VAT or sales tax on top when you put the price on a quote; the quote maker does that for you by country.