Free calculators · Pricing
Markup vs margin calculator
A 30% markup is not a 30% margin. Enter your cost and the markup, margin or price you know, and see the rest instantly.
Results
- Selling price
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- Gross profit
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- Markup on cost
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- Margin on price
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- Price multiplier
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How the math works
Markup is a percent of cost. Margin is a percent of the selling price. The same dollars of profit give a smaller margin than markup.
Price = Cost ÷ (1 − Margin)
Margin = (Price − Cost) ÷ Price
Markup = (Price − Cost) ÷ Cost
Markup = Margin ÷ (1 − Margin)
Margin = Markup ÷ (1 + Markup)
Example: a $1,000 cost with a 30% markup sells for $1,300. Profit is $300, which is a 23.08% margin. To keep a true 30% margin you need $1,000 ÷ 0.70 = $1,428.57, a 42.86% markup.
Quick reference
| Margin you want | Markup you need |
|---|---|
| 10% | 11.11% |
| 15% | 17.65% |
| 20% | 25.00% |
| 25% | 33.33% |
| 30% | 42.86% |
| 35% | 53.85% |
| 40% | 66.67% |
| 50% | 100.00% |
Excel + Google Sheets version
Run it for your whole company.
The Overhead & Markup vs Margin Calculator adds an overhead budget, recovery rates and a job pricer that prices every bid to cover overhead and hit your target margin.
Instant digital download. Works in Excel 2016 or later and in Google Sheets. No macros.
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Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a percent of your cost. Margin is profit as a percent of the selling price. A $1,000 cost sold for $1,300 has a 30% markup but only a 23.08% margin.
What markup do I need for a 30% margin?
Divide the margin by one minus the margin: 0.30 ÷ 0.70 = 42.86%. A $1,000 cost needs a $1,428.57 price.
Why does a 30% markup not give a 30% margin?
The markup is taken on the smaller number (cost) and the margin is measured on the larger number (price), so the same profit is a smaller share of the price.
Should the cost include overhead?
If you want a net margin, yes. Add your share of overhead to the job cost first, or use our overhead calculator to price the job with overhead built in.
Can margin be 100% or more?
No. Margin is a share of the selling price, so it is always below 100%. Markup has no upper limit.
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