Price your work

Markup and Margin Calculator

Enter a cost plus a markup, margin or price to see all three side by side, with the difference explained.

This mix-up is common — and it costs real money

Suppliers, clients and even pricing spreadsheets often use "markup" and "margin" interchangeably, but they're never the same number except at 0%. If someone asks you to "mark it up by 30%" and you read that as a 30% margin instead, you'll underprice the job — and the gap gets bigger as the percentage grows. Always confirm which one a client or supplier means before you plug in a number.

How to use this

Enter your cost.
Choose whether you know the markup, margin, or final price.
Type that value — the other two are worked out for you.

Selling price

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Profit: —
Markup (profit ÷ cost): —
Margin (profit ÷ price): —

Your cost

I know my Value

Markup and margin are not the same

Markup is profit as a share of cost. Margin is profit as a share of the selling price. A 50% markup on a $40 cost sells at $60, which is only a 33.3% margin.

Which should I use to price a job?

Use markup if you start from cost and add a percentage. Use margin if you want profit to be a set share of what the client pays. Mixing them up is an easy way to underprice a job.

Someone asked me for a 40% markup — is that the same as a 40% margin?

No, and the difference is worth catching before you quote. A 40% markup on a $100 cost gives a price of $140, which is only a 28.6% margin. A 40% margin on that same $100 cost means the price needs to be about $167 instead. If a client or supplier says "markup" or "margin" without a number attached, ask which one they mean — plug real numbers into this calculator to see the actual gap.

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