Markup Calculator

Convert markup ↔ margin, calculate selling price and profit

What is this? Markup and margin are NOT the same thing — and this confuses a lot of business owners. A 50% markup on a $60 item means you add $30 to get a $90 selling price (margin = $30/$90 = 33.3%). A 33.3% margin means $60 cost → $90 selling price (markup = $30/$60 = 50%).

Markup rule: To convert margin to markup: markup = margin / (1 - margin). To convert markup to margin: margin = markup / (1 + markup).

Who it's for: Retailers, wholesalers, service businesses, and anyone pricing products or services.
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Results
Cost
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Selling Price
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Gross Profit
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Markup %
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Gross Margin %
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Breakeven Multiple
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Markup ↔ Margin Quick Reference
CostMarkupSelling PriceMargin

For educational purposes. Actual pricing depends on market conditions, competition, and business strategy.

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Frequently Asked Questions

What's the difference between markup and margin?

Markup = (Price - Cost) / Cost. Margin = (Price - Cost) / Price. A 50% markup = 33% margin. A 100% markup = 50% margin. Service businesses often use markup; product businesses use margin.

What markup should I charge as a contractor?

General rule of thumb: 20-30% markup on direct costs (labor + materials). This covers overhead and profit. Higher markup for small jobs (overhead is spread over fewer dollars). Lower markup for large, repetitive jobs.

How do I calculate true job cost?

Direct labor (hours × rate) + Materials + Subcontractor costs + Equipment rental + Permits + Overhead allocation. Don't forget: your own time, truck/vehicle costs, insurance, and the risk premium for unexpected issues.

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