InvoiceToolsMargin & Markup Calculator
Margin and markup get mixed up constantly — and the mix-up costs money. Enter your numbers and see both, plus the profit. Or flip it around: start from the margin you want and get the price to charge.
Cost & price → margin
| Profit | 20.00 |
| Margin (profit ÷ price) | 20% |
| Markup (profit ÷ cost) | 25% |
Works in any currency — the percentages are the same either way.
Reverse: price for a target margin
| Sell at | 114.29 |
| Profit at that price | 34.29 |
| That is a markup of | 42.86% |
The two-minute version: margin vs markup
Say a job costs you 80 and you charge 100. Your profit is 20 — that part everyone agrees on. The argument starts with the percentage:
- Margin = profit ÷ price → 20 ÷ 100 = 20%. "Of every 100 I take, 20 is profit."
- Markup = profit ÷ cost → 20 ÷ 80 = 25%. "I added 25% on top of my cost."
Why it matters: if you want a 30% margin but accidentally add a 30% markup, you price too low and quietly give away profit on every job. Use the reverse calculator above whenever you set a price from a target margin — it is what accountants, retailers and pricing tools use.
Quoting a job right now? Check the margin first, then build the customer-facing document in the quote generator.
Margin & markup questions, answered
What is the difference between margin and markup?
They describe the same profit in two ways. Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. Example: something costs 80 and sells for 100, so profit is 20. Margin is 20 ÷ 100 = 20%. Markup is 20 ÷ 80 = 25%. Markup is always the bigger number.
How do I calculate margin?
Margin % = (price − cost) ÷ price × 100. It answers: out of every pound or dollar of sales, how much is profit?
How do I calculate markup?
Markup % = (price − cost) ÷ cost × 100. It answers: by what percentage did I increase the cost to get my price?
Can margin be more than 100%?
No. Margin is a share of the selling price, and profit can never be more than the whole price, so margin stays under 100%. Markup has no such limit — a markup of 200% simply means the price is three times the cost.
How do I price something for a target margin?
Price = cost ÷ (1 − margin ÷ 100). Use the reverse calculator above: enter your cost and the margin you want — say 30% — and it gives the selling price that delivers exactly that margin.
What is a good margin?
It depends heavily on the trade: many retailers work on 20–50%, tradespeople often price labour well above that, and software can exceed 70%. Compare yourself with your own industry, and remember the margin here is before overheads like rent, fuel and tax.