Free tool

Markup vs margin calculator

Enter your job cost and either a markup or target margin. Use the sell price on your quote — then send it as a branded link from the job site.

Charge customer
$12,500
Profit
$2,500
Markup on cost
25.0%
Margin on price
20.0%

A 25.0% markup is not the same as a 25.0% margin. Margin is profit divided by the price you charge — always a smaller number than markup on cost.

Quick reference

  • Markup — added on top of your cost. 25% markup on $10,000 cost = $12,500 price.
  • Margin — profit as a share of the price you charge. That same job is only a 20% margin.

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