HomeFree toolsMarkup vs margin calculator
don’t under-quoteMarkup vs margin calculator
A 30% markup is not a 30% margin. Enter your cost and one of the other numbers, and see the sell price, markup, margin and profit side by side.
ex GST
- Profit$0
- Markup (profit ÷ cost)0%
- Margin (profit ÷ sell price)0%
- Sell price with GST$0
Markup vs margin, in plain English
Both describe your profit, just measured against different numbers:
- Markup is profit compared with your cost.
- Margin is profit compared with the sell price.
So a job that costs you $100 and sells for $150 has a 50% markup, but only a 33.3% margin. If you want a 30% margin and add 30% markup, you’ll fall short.
| Markup | Gives a margin of |
|---|---|
| 20% | 16.7% |
| 25% | 20% |
| 33.3% | 25% |
| 50% | 33.3% |
| 100% | 50% |
Common questions
What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by the sell price. The same job always has a higher markup percentage than margin percentage.
How do I convert margin to markup?
Markup = margin ÷ (1 − margin). For a 25% margin: 0.25 ÷ 0.75 = 33.3% markup.
Should prices be ex GST when working out margin?
Yes. Work out markup and margin on prices before GST, because the GST isn’t yours to keep.
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