Free tool
Markup & Margin Calculator
Turn a cost into a sell price, and see the markup and the margin side by side.
Sell it for
$125.00
That's $25.00 profit on this item.
25.0%
markup (on cost)
20.0%
margin (on price)
Notice markup and margin aren't the same: a 25.0% markup is only a 20.0% margin. Quoting off the wrong one is a classic way to undercharge. Prices exclude GST.
Markup is the profit measured against your cost. Margin is the profit measured against the sell price. They're always different numbers, and pricing off the wrong one is one of the fastest ways to quietly undercharge.
Enter a cost, choose whether you're setting a markup or a target margin, and you'll get the sell price with both percentages shown, so you always know exactly what you're actually making.
Frequently asked questions
What's the difference between markup and margin?
Markup is the profit as a percentage of your cost. Margin is the profit as a percentage of the sell price. A 50% markup is only a 33% margin. Mixing them up is one of the most common ways tradies undercharge.
How much should I mark up materials?
Many tradies mark materials up 15–30% to cover the time spent sourcing, buying, carrying and warranting them, plus the cash tied up. There's no legal rule, it's your business, but marking up at cost means you're doing that work for free.
How do I convert a markup into a margin?
Margin = markup ÷ (100% + markup). So a 25% markup is a 20% margin; a 50% markup is a 33% margin. This calculator shows both at once so you never confuse them in a quote.
Should I mark up subcontractors too?
Usually yes. If you're carrying the risk, managing them and warranting their work, a markup covers that responsibility and the admin. Price it the same way you'd price materials.
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