Profit margin and markup calculator
Margin and markup describe the same profit from two sides, and mixing them up is the quickest way to underprice a job. Enter a cost and either a price, a target margin or a markup, and see all three side by side. Everything runs in your browser. Nothing you type is sent to us, and nothing is stored.
- Free, no sign-up
- About 1 minute
- Nothing leaves your browser
Profit margin and markup calculator
How to use it.
- 1
Start from the cost
Everything the job costs you to deliver: materials, subcontractors and the time it takes.
- 2
Choose what you know
The price you charge, the margin you want or the markup you use.
- 3
Read all three
Price, profit, margin and markup, so you can quote with confidence.
The arithmetic, in full.
No black box. This is exactly what the tool calculates, so you can check it by hand.
- Profit = price - cost
- Margin = profit / price
- Markup = profit / cost
- Price for a target margin = cost / (1 - margin)
- Price for a markup = cost x (1 + markup)
A worked example
A job costing $600 priced at $900 makes $300 of profit: a 33.3% margin and a 50% markup. For a 40% margin on the same cost, the price is $1,000.
Common questions.
What is the difference between margin and markup?
Both describe the same profit. Margin divides it by the price; markup divides it by the cost. A 50% markup is only a 33.3% margin, which is why confusing the two underprices work.
What is a good margin for a service business?
It depends on your trade, your overheads and your market, so we do not quote a benchmark. The useful margin is the one that covers your overheads and leaves the profit you planned; the break-even calculator shows how the two connect.
Should my own time be part of the cost?
Yes. If you do the work, value your time at your hourly rate, or the margin looks healthier than it is.
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