Work out your margin and markup, or find the selling price you need to hit a target
Profit margin tells you what share of the selling price is actually profit, after covering what the item or job cost you. It is one of two common ways to price something, the other being markup, and mixing the two up is the single most common pricing mistake small businesses make.
The two numbers are always different for the same sale, and the gap grows as the percentage gets bigger. A 50% markup on a cost of 100 sets a price of 150, but that 50 profit is only a 33% margin on the 150 selling price, not 50%. Confusing the two leads to underpricing, since a target "50% margin" needs a 100% markup to hit, not a 50% one. See our full breakdown of why small businesses confuse margin and markup for more examples.
Margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost price. This calculator shows both at once so you never confuse the two.
Switch to "Cost & target margin", enter your cost price and the margin or markup percentage you want, and the calculator instantly works out the selling price you need to charge.
Subtract the cost from the selling price, divide the result by the cost, then multiply by 100. Enter both numbers above and the calculator does this for you instantly.
Yes. This profit margin and markup calculator is 100% free, with no sign-up required.
Subtract your total cost for the job, materials, labor, and any overhead you attribute to it, from what you charged the client. Enter both numbers above to see that profit expressed as both a margin and a markup percentage, so you can compare it against similar jobs.