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Percentage Calculator

Calculate markup, profit margin, discounts, and percentage changes. Essential tools for pricing your services and materials profitably.

Markup Calculator

Selling Price

$125.00

Markup

25.00%

Profit

$25.00

Markup = (Selling Price - Cost) / Cost x 100

Markup to Margin Reference

Markup %Margin %
15%13.04%
20%16.67%
25%20.00%
30%23.08%
40%28.57%
50%33.33%
75%42.86%
100%50.00%

Understanding Markup vs. Margin

The Difference

  • Markup is the percentage added to cost to get the selling price.
  • Margin is the percentage of the selling price that is profit.
  • Same dollar profit, different percentages because they use different bases.

Example

Item costs $100, sells for $150

  • Profit: $50
  • Markup: $50 / $100 = 50%
  • Margin: $50 / $150 = 33.3%

50% markup = 33.3% margin (same profit, different calculation)

When to Use Each

Use Markup When...

  • Calculating prices from supplier costs
  • Setting materials pricing for customers
  • Comparing prices to your costs
  • Industry uses markup as standard (retail, materials)

Use Margin When...

  • Analyzing profitability of your business
  • Comparing to industry financial benchmarks
  • Reporting to accountants or investors
  • Understanding what % of revenue is profit

Pro Tip: Many contractors confuse the two and accidentally undercharge. If you want a 30% profit margin, don't add 30% to your cost - you need to add 42.86% (markup) to achieve 30% margin.

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