Markup vs margin calculator

Put in a cost. Get the price at your margin or your markup, and the profit in it.

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Cost

From a marginFrom a markupFrom a price

Target margin

Markup

Price

Price: –
Gross profit: –
Margin: –
Markup: –

An estimate from the numbers you enter. Check your own figures.

The formula usedPrice from a margin = cost ÷ (1 − margin ÷ 100). Price from a markup = cost × (1 + markup ÷ 100). Margin = (price − cost) ÷ price × 100. Markup = (price − cost) ÷ cost × 100. On the lines tab, each line total = Qty × Price, and the O&P line = O&P percent × the other lines.

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How it works out

Margin is the share of the price you keep. Markup is what you add on top of the cost.

At a 40 percent margin, a line that costs you $600 is priced at $1,000, and $400 of that is profit.

A 25 percent markup on a $600 cost is $750, and the margin in that price is 20 percent.

Re-price sets every line that has a cost to the margin you pick. A line with no cost keeps its price, and the O&P line is a percent of the other lines, so add it again after you re-price.

Do it on the real estimate

The cost is for you. The customer's estimate shows the price. Set your target margin and press Re-price: every line with a cost updates at once.

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Questions

What's the difference between markup and margin?

Markup is figured on the cost. Margin is figured on the price. A 25 percent markup on a $600 cost is $750, and the margin in that price is 20 percent.

Why does the margin stop at 90 percent?

Past 90 percent the price climbs too fast to mean much. If you want a price that high, type it in the From a price tab.

Does sales tax change the margin?

No. The margin is figured before tax.