Free markup calculator
Know your price before you quote.
Calculate markup, margin and selling price
Choose any two values to calculate the rest.
Markup and margin converter
Convert between markup on cost and margin on selling price.
Markup formula
Markup compares profit with what the work cost you. Write the percentage as a decimal in the price formula, so 25% becomes 0.25.
Markup % = (price − cost) ÷ cost × 100
Selling price = cost × (1 + markup)
Margin % = (price − cost) ÷ price × 100
Margin vs markup
The same profit gives two different percentages. Markup divides it by cost; margin divides it by selling price, so markup is always the higher number. These conversions are arithmetic, not recommended rates.
Markup to margin conversion
| Markup on cost | Margin on price |
|---|---|
| 20% | 16.67% |
| 25% | 20% |
| 33.33% | 25% |
| 50% | 33.33% |
| 100% | 50% |
Margin to markup conversion
| Margin on price | Markup on cost |
|---|---|
| 10% | 11.11% |
| 20% | 25% |
| 25% | 33.33% |
| 30% | 42.86% |
| 40% | 66.67% |
| 50% | 100% |
How contractors and service businesses use markup
Start with what materials cost you and the full labor cost of the work, then account for overhead such as equipment, travel and administration. A markup on materials alone does not show whether the whole job covers its costs.
To price a whole job from labor, materials and overhead, use the job pricing calculator. Choose your own target profit rather than treating an example percentage as an industry rate.
Worked example
Example only, not a recommendation
- Cost $100.00, markup 50%.
- Selling price: $100.00 × 1.5 = $150.00.
- Profit: $150.00 − $100.00 = $50.00.
- Margin: $50.00 ÷ $150.00 = 33.33%.
Markup calculator FAQ
What is markup?
Markup is the amount added to cost to set a selling price. Markup percentage measures that increase as a share of cost.
How do I calculate markup?
Subtract cost from selling price, divide the difference by cost, then multiply by 100. You need a cost greater than zero to calculate a markup percentage.
How do I calculate selling price from cost and markup?
Multiply cost by one plus the markup as a decimal. A cost of $100 with a 25% markup gives $100 × 1.25 = $125.
What is the difference between markup and margin?
Markup measures profit against cost. Margin measures the same profit against selling price. They use different bases, so the percentages are different.
How do I convert margin to markup?
Divide margin percentage by 100 minus margin percentage, then multiply by 100. The margin must be below 100%.
What is a 30% markup as a margin?
A 30% markup gives a margin of about 23.08%, because the same profit is divided by the higher selling price instead of cost.
What markup should I use?
It depends on your costs, overhead and target profit. Check the full cost of the work and the price you need to cover it; this calculator does not recommend an industry benchmark.
Is 50% markup the same as 50% margin?
No. A 50% markup gives a margin of about 33.33%. A 50% margin requires a 100% markup.
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