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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