Markup is against cost
It answers "how much did I add on top of what it cost me?" Easy to apply, but it always looks bigger than the margin.
Free calculator
Markup vs Margin Calculator
Markup and margin are not the same thing, and mixing them up costs you money. Enter a cost and the percentage you know, and it shows the sell price, the profit, and the conversion both ways.
Your numbers
Pick what you already know, then enter your figures. Nothing is saved or sent anywhere.
What the item or job costs you before profit.
£
The percentage you add on top of your cost.
%
Sell price
£125
A £100 cost priced to 25% markup.
Profit
£25
What you keep on the sale.
Equivalent margin
20%
The same profit as a share of the price.
Both ways
- Markup (profit ÷ cost)
- 25%
- Margin (profit ÷ price)
- 20%
Getting your pricing right is half the battle. Being found by the right customers is the other half. A professional website brings in work at prices that hold.
Disclaimer: These calculators are provided for general guidance only. Results are estimates based on the figures you enter and may not reflect your full costs, tax position, legal obligations, or business circumstances. They are not financial, tax, legal, or professional advice. You should check the figures yourself and speak to a qualified adviser where needed. Kwise Web accepts no liability for decisions made using these tools.
Markup and margin, in plain terms
Margin is against price
It answers "what share of the sale do I actually keep?" This is the number that protects your business.
They are never equal
A 50% markup is only a 33% margin. Aim for a margin and let the calculator tell you the markup to add.
How this is calculated
Whichever figure you enter, the rest come from these formulas.
Sell price (if you know your markup)
Cost × (1 + Markup %)
Sell price (if you know your margin)
Cost ÷ (1 − Margin %)
Profit
Sell price − Cost
Markup %
Profit ÷ Cost × 100
Margin %
Profit ÷ Sell price × 100
Questions
What is the difference between markup and margin?
Markup is the profit measured against your cost. Margin is the same profit measured against the price you sell at. Buy for £100 and sell for £125 and you have a 25% markup but only a 20% margin. Because the price is always bigger than the cost, the margin percentage is always lower than the markup.
How do I convert markup to margin?
Divide the markup by one plus the markup. A 25% markup is 0.25 ÷ 1.25 = 0.20, or a 20% margin. This calculator does the conversion both ways for you.
Why does mixing up markup and margin cost me money?
If you want a 30% margin but add 30% markup, you fall short, because a 30% markup is only about a 23% margin. Over a year of jobs that gap is real money. Pricing to margin is the safer habit, as it protects the share of every sale you keep.
Related resources
Get the percentages right, then use them to price real jobs.
Job pricing calculator
Put your margin to work on a full job, with materials, labour, and overheads included.
Day rate calculator
Work out the day rate that feeds the labour side of every job you price.
Website cost recoup calculator
See how quickly a website pays for itself once your jobs are priced properly.
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