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Markup and margin calculator
Markup is not margin, and the gap is your profit.
$
Your sell price
$12,000
Cost$10,000
Markup20.0%
Profit$2,000
Sell price$12,000
True margin16.7%
To hit a target margin
For a 20.0% margin you would mark up 25.0% and sell at $12,500. Markup is added to cost, margin is a share of the price, so a 20% markup on cost is only a 16.7% margin on the price. Pricing to a margin protects the job when costs move.
General guidance only. Set your own cost base, overheads and target return.
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