Markup vs margin calculator
Enter a cost and either number. It converts between the two and shows what you actually keep.
A 25 percent markup is a 20 percent margin. If those look like the same number to you, this is the calculator worth two minutes of your time, because the gap compounds across every job you have ever priced.
Enter your job cost, then set either the markup you add or the margin you want. Both sides update, so you can see exactly what one costs you against the other.
Materials, burdened labor, subs, equipment. Not overhead.
What that produces
| To earn this margin | Mark up by |
|---|---|
| 20% | 25% |
| 25% | 33% |
| 30% | 43% |
| 40% | 67% |
| 50% | 100% |
Markup measures profit against your cost. Margin measures it against your price. Same dollar of profit, different denominator, and margin is the one your accountant and your bank mean.
Job cost here means everything the job consumes: materials, burdened labor, subcontractors, equipment, permits. Overhead is not job cost, and if you have folded it in, price off the overhead calculator first.
The reasoning behind these numbers is in Markup vs margin, and why confusing them costs you money.