Markup vs. Margin Calculator
Convert markup to margin and price a job without the common mix-up.
Based on your inputs. Review the assumptions below.
Your financial inputs stay in this browser. Results are planning estimates, not guaranteed outcomes or professional advice.
The math, without the mystery.
What this calculator does
Convert markup to margin and price a job without the common mix-up. It separates the parts of your estimate so you can examine what changes when a price, cost, or timing assumption changes.
Who should use it
Estimators and owners translating a profit goal into a selling price.
How to use it
Replace the hypothetical inputs with figures from your estimate, contract, or business budget. Enter dollar amounts in USD and percentages as whole percentages: enter 20 for 20%. Results recalculate immediately. Use Reset to return to the example and compare a revised scenario.
How the calculation works
Markup mode: selling price = cost × (1 + markup). Margin mode: selling price = cost ÷ (1 − margin). Profit = price − cost. Markup = profit ÷ cost. Margin = profit ÷ price.
A worked example
On a hypothetical $10,000 cost, 25% markup sets a $12,500 price and produces 20% margin. A 25% margin needs $13,333.33, equivalent to 33.33% markup. A 50% markup gives 33.33% margin.
Common mistakes
Adding 20% to cost produces a 16.67% margin, not a 20% margin. The denominator is the difference: markup uses cost, margin uses revenue.