Markup Calculator

Cost in, price out. See markup and margin side by side, because they are not the same number and mixing them up costs real money.

Selling price
$140.00
Profit
$40.00
Margin
28.6%

Markup vs. margin, in one breath

Markup is profit as a percentage of cost. Margin is profit as a percentage of price. A 40% markup on a $100 part gives a $140 price, and that $40 profit is a 28.6% margin. The trap: aiming for a "50% margin" but applying a 50% markup gets you a 33% margin, a third less profit than intended. When someone says a percentage, ask which base they mean.

Quick reference

  • Markup 20% = margin 16.7%
  • Markup 30% = margin 23.1%
  • Markup 40% = margin 28.6%
  • Markup 50% = margin 33.3%
  • Markup 100% = margin 50%
  • To hit a target margin: markup % = margin ÷ (100 − margin) × 100. A 30% margin needs a 42.9% markup.

Typical trade markups on parts and materials run 20–50% over cost; the reasoning per trade is in the 2026 Trade Pricing Report.

Embed this calculator. Free to embed on your site or blog with the link left intact: <iframe src="https://invoicecraft.net/tools/markup-calculator?embed=1" width="100%" height="420" style="border:0;border-radius:10px;" title="Markup Calculator"></iframe> <p>Calculator by <a href="https://invoicecraft.net/tools/markup-calculator">InvoiceCraft</a></p>

Related