How the margin vs markup calculator works
Markup is how much you add on top of your cost, as a percentage of the cost. Margin is how much of the price you keep, as a percentage of the price.
Because margin is measured against the bigger number (the price), it's always smaller than the markup. A 30% markup on $100 gives a $130 price and a 23.1% margin.
To keep a set margin, divide your cost by (1 - margin). To keep 30%, $100 ÷ 0.70 = $142.86, which is a 42.9% markup.
Tips from the trade
- Decide your target as a margin, because that's what you actually keep.
- Make sure your cost includes your own time, drive time and wear on your equipment, not just materials.
- All EasyWorkTools quote calculators price by margin, so the profit you see is the profit you keep.
When you need more than a free margin vs markup calculator
This calculator answers one quick question. Running a business means doing it on every job, with your own rates saved and a quote you can send.
Margin vs markup calculator questions
What's the difference between margin and markup?
Markup is profit as a percent of your cost. Margin is profit as a percent of your price. On a $100 cost sold for $130, the markup is 30% but the margin is only 23.1%.
Is 30% markup the same as 30% margin?
No. A 30% markup gives a 23.1% margin. To get a 30% margin you need about a 42.9% markup.
What margin should a service business aim for?
Many trade businesses aim for 20% to 35% net margin after paying everyone, including themselves. Check what's normal in your area and trade.
Which one should I use to price jobs?
Use margin. It tells you how much of every dollar you keep, which is what pays for slow weeks, new equipment and growth.