Markup and margin calculator

Subtract cost from price, divide by cost and multiply by 100. A job that costs $10,000 and sells for $15,000 has $5,000 of profit, so the markup is 50%. The same price is a 33.3% margin, because margin divides by price. This markup percentage calculator does the math both ways, and ECHOPS price book items carry their own markups.

Multiply the cost by one plus the markup: price = cost × (1 + markup). A $10,000 job at a 40% markup sells for $14,000. That price earns a 28.6% gross margin, not 40%, so check the margin before you send the quote. Enter your cost and markup above and the percent markup calculator shows both.

Divide the margin by one minus the margin: markup = margin ÷ (1 − margin). A 25% margin takes a 33.3% markup. To go from markup to margin, divide the markup by one plus the markup, so a 25% markup is a 20% margin. Our markup vs. margin guide has worked examples.

Both start from the same profit: price minus cost. A gross margin calculator divides that profit by the price, the way a profit and loss statement shows it. A markup calculator divides it by the cost, which is easier to apply line by line in an estimate. This page works as both, so you can price with markup and judge with margin.

There’s no single right number; your markup has to cover overhead and leave the profit you want. Start from the margin you need, then convert it. If overhead takes 15% of sales and you want 10% profit, you need a 25% gross margin, which takes a 33.3% markup. Find your hourly costs first with the labor rate calculator.

Yes. Enter your true hourly labor cost as the cost, then the markup or margin you want, and the result is your hourly billing rate. Make sure that cost already includes payroll taxes, workers’ comp, benefits and the hours you can’t bill, or the rate will come in low.