How a markup becomes a price
Sample numbers. A $100 cost with a 25 percent markup sells for $125. The profit is $25, and $25 divided by $125 is a 20 percent margin.
The full conversion chart is in markup vs margin. This calculator runs the two sums: price from a markup, and markup from a cost and a price.
Finding the markup from the price
Sample numbers. An $80 cost sold at $100 is a $20 profit. $20 divided by $80 is a 25 percent markup, and $20 divided by $100 is a 20 percent margin.
The job profit calculator starts from the finished price and the costs, and reports the margin. Use this page while you are still setting the price. The labor cost calculator turns a wage into the hourly cost that markup sits on.
Markup questions
How do you price a job with markup?+
Enter the cost and the markup percent. A $100 cost at 25 percent markup is $125, with $25 of profit and a 20 percent margin. Definitions and the conversion chart are in markup vs margin.
How do you mark up materials vs labor?+
Many trades mark up materials and price labor from an hourly rate. A 25 percent markup on materials is a 20 percent margin, and each cost can be entered here on its own. Price the hourly labor cost in the labor cost calculator, then check the whole job's margin, not only the materials line.
What markup gives a 30 percent margin?+
A 30 percent margin takes a 42.9 percent markup. On a $1,200 cost the price is $1,200 divided by 0.7, or $1,714.29. The other pairs are in the markup vs margin conversion chart.