Markup & margin calculator
Enter what a job costs and pick margin or markup. You get a selling price and both percentages at once. You can then see why they are not the same number. The numbers update as you type. No signup, nothing saved, nothing sent anywhere.
This tool runs entirely in your browser. We never receive the client names and amounts you type. We never store them. They are gone when you close the tab. Why we can say that →
Markup and margin calculator
Got a price you trust? Put it on a bill with the free invoice generator. Work out your own hourly rate. See what a late payment would cost with the late fee calculator. Or see all free tools.
What’s the difference between markup and margin?
Both are “profit as a percentage.” They divide by a different number. Markup divides profit by cost. You add 50% on top of what the job cost you. Margin divides the same profit by the selling price. Here, 50% of what you charge is profit. The dollars are the same, but the percentages differ. The gap between them gets wider as either number goes up.
A $100 job marked up 50% sells for $150. A $50 profit on a $150 price is a 33.3% margin. It is not 50%. For a 50% margin on that same $100 cost, the price must be $200. That is a 100% markup. This calculator shows that gap. Enter one number and see the other. Do not assume they match.
How to use it to price a job
Start with an honest total for what the job costs. Use the materials at what you will pay. Use your labour at the hourly rate you want to be paid. Add a share of overhead. How to price a job so the number holds up explains the full method. This calculator picks up from that total. Enter it as the cost here. Then decide if you think in margin or markup. Trades and retail often use markup. “What share of this invoice is profit” is a margin question. The other percentage shows as an output either way.
Some jobs are hard to predict. The price may feel too low once you count the risk. Raise the percentage. Do not doubt the formula. The calculator shows at once what that does to both numbers.
Does the price hold up on paper? How to write a quote that wins the work shows how to turn it into a document a client signs. The free rate calculator prices your own hours in the same way that this page prices a job.
Common questions
What’s the difference between markup and margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. A 50% markup and a 50% margin give different prices. A $100 job marked up 50% sells for $150. A $100 job with a 50% margin sells for $200. The profit percentage is the same, but the base is different. So the price is different.
Which one should I use to price a job?
Margin is usually the better number to plan around. It tells you what share of the invoice is profit. That profit covers your slow weeks and your own pay. Markup is more common in retail and trades pricing. It is a simple percentage on top of a known cost. This calculator shows both from the same numbers. You can quote in the one your industry expects and still know your real margin.
Why does a 100% markup only give a 50% margin?
Markup divides profit by cost. Margin divides the same profit by the larger selling price. A 100% markup doubles your cost. Profit is then exactly half of the final price. That is a 50% margin. The two numbers are equal only at 0%. The higher they go, the further apart they drift.
Want the price to carry into the invoice?
In BizBinder, a job holds its time and material lines at the rates you set. On the job page, “Create invoice” turns those lines into a draft invoice. BizBinder does not calculate margin or markup for you.
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- guide How to price a job so the number holds up The quote works only if its number works. Start with the price, then write it up.
- tool Free Quote & Estimate Generator Fill in your business and client details. Add line items, mark any as optional, and set a deposit. A clean quote builds as you type. Turn it into an invoice with one click.
- tool Quote & invoice terms builder Tick the clauses that fit the job and fill in your numbers once. You get a plain-English terms block. Copy it, print it, or send it into the quote generator.