Free Calculator

Markup vs Margin Calculator

Markup and margin aren't the same thing — and the mix-up costs contractors real money every year. Enter your cost and either the markup or the margin you want. We'll do the rest.

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How much you add on top of your cost

Selling price$150.00
Profit$50.00
Markup50.0%
Profit margin33.3%

What's the difference?

Markup

How much you add to your cost to get your selling price.

Markup % = (Price − Cost) / Cost

Example: A $100 part sold for $150 has a 50% markup.

Profit margin

The percentage of the selling price that's profit.

Margin % = (Price − Cost) / Price

Example: A $100 part sold for $150 has a 33% margin.

Why this matters for contractors

If you need a 30% profit margin on materials, you don't mark them up by 30% — you need a 42.9% markup. Marking up by only 30% leaves you with a 23% margin, not 30%. On a $10,000 job, that's $700 of profit you thought you were making but aren't.

Quick reference

MarkupEquivalent margin
10%9.1%
20%16.7%
25%20%
33%24.8%
43%30%
50%33.3%
67%40%
100%50%

Quote with your real numbers.

SoloBid's price book stores your cost and markup on every material and labor item. Your quotes calculate themselves — with the margin you actually need.

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