About this calculator
Markup and margin are not the same number, and mixing them up quietly costs contractors money. This shows both for any price.
How it’s calculated
Markup = profit ÷ cost. Margin = profit ÷ price. A 25% markup is only a 20% margin. To hit a 20% margin you need a 25% markup.
Worked example
With these inputs:
- Your cost
- £1000
- Set price by
- Markup %
- Markup %
- 25%
the result is:
- Selling price
- £1,250.00
- Markup (on cost)
- 25%
- Gross margin (on price)
- 20%
- Profit
- £250.00
Tips from the trade
- Overhead has to come out of the margin before you make any real profit.
- Mark up materials and labour separately if the client will see itemised prices.
Common questions
What markup gives a 30% margin?
42.9%.
Results are estimates for planning and pricing. Check quantities against your drawings, the manufacturer’s data and the Building Regulations before ordering.