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Free calculator
Markup vs margin calculator
Enter what the job costs you and the one number you know. The other two work themselves out.
Sell price
$13,000.00
Profit
$3,000.00
Markup
30%
Margin
23.1%
A 30% markup is a 23.1% margin.
The mistake that costs money
Markup is profit divided by what the job cost you. Margin is profit divided by what you sold it for. Same job, same profit, two different percentages, and the margin is always the smaller one.
Price at cost plus 30% expecting a 30% margin and you've made 23.1%. On a $20,000 job, that's $1,385 less profit than you thought you had.
The formulas
- Markup = (price - cost) ÷ cost
- Margin = (price - cost) ÷ price
- Price from a markup = cost × (1 + markup)
- Price from a margin = cost ÷ (1 - margin)
Markup to margin
| Markup | Margin |
|---|---|
| 10% | 9.1% |
| 15% | 13% |
| 20% | 16.7% |
| 25% | 20% |
| 30% | 23.1% |
| 35% | 25.9% |
| 40% | 28.6% |
| 50% | 33.3% |
| 60% | 37.5% |
| 75% | 42.9% |
| 100% | 50% |
Stop working out margins by hand
ExteriorPro tracks the margin on every job, from the accepted estimate to what you actually spent on it. Thirty days free, with no card and no sales call.