Free tool · Commercial
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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On a live project
The maths is the easy part. The rates, exclusions and conditions that decide the real margin live in your quotes and contracts. Alloovium reads those and answers with the source cited.
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