Markup calculator: price, margin & profit
This markup calculator turns your cost into a selling price. Enter a markup percent, or the profit margin you want, and it shows the price, your profit and both percentages. Already have a price? Enter it to see the margin and markup you're actually making. Add a deposit percent to split the price into deposit and balance.
How to use the markup & margin calculator
- Pick what you know: markup, margin, or the selling price.
- Enter your cost for the job or product (materials, labor, fees).
- Enter the markup or margin percent, or the price.
- Add a deposit percent if you take one up front.
- Use the price on your estimate or invoice.
Formulas
| Price from markup | cost × (1 + markup %) |
|---|---|
| Price from margin | cost ÷ (1 − margin %) |
| Margin vs markup | margin = markup ÷ (1 + markup); markup = margin ÷ (1 − margin) A 50% markup is a 33.3% margin; a 50% margin is a 100% markup. |
Questions
What is the difference between margin vs markup?
Margin vs markup comes down to what you divide by. Markup is profit divided by cost; margin is profit divided by the selling price. On a $60 cost sold for $100, profit is $40, so markup is 66.7% and margin is 40%. Margin is always the smaller number.
How do I calculate selling price from cost and margin?
To get a selling price from cost and a target margin, divide the cost by one minus the margin. For a 40% margin on a $60 cost, $60 ÷ 0.60 = $100. Adding 40% to the cost instead gives $84, which is only a 28.6% margin.
What markup gives a 50% profit margin?
A 100% markup gives a 50% profit margin: you double the cost. A 25% margin needs a 33.3% markup, and a 33.3% margin needs a 50% markup. The profit margin calculator converts any markup to margin and back.
How much deposit should I ask for?
A deposit is the part of the price paid before work starts. Many service businesses ask 25% to 50%, enough to cover materials or hold the date. Enter the percent and the calculator splits the price into the deposit and the balance due later.
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