Cost, percent, or sell price
What you paid. Markup is profit ÷ this number.
Profit ÷ cost. 25% on $100 → sell $125.
Profit ÷ sell. 20% on $100 cost → sell $125.
$100 cost and $125 sell → 25% markup, 20% margin.
Markup vs margin · not a quote
- Cost
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- Sell
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- Profit
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- Markup
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- Margin
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Enter a cost and either markup %, margin %, or sell price.
Markup = profit / cost. Margin = profit / sell price. 25% markup is not 25% margin.
This is shop math — markup versus margin on a cost and a sell price. It is not a quote, not tax, not sales tax, and not a job estimator. No line items, no hours, no materials takeoff, no invoice. 25% markup = 20% margin on $100 → $125. Confirm the bid before you send it.
Markup is not margin
Contractors search “markup vs margin” after a 25% add-on and a 25% target get treated as the same number. They are not. Markup divides by cost. Margin divides by sell price. This page is not a quote, not tax, and not a job estimator. Materials live on the job-site calculators. GROSS pay lives on hourly salary and paycheck. Invoice due dates live on business days.
markup = profit / cost margin = profit / sell profit = sell − cost sell = cost × (1 + markup) sell = cost / (1 − margin) (margin < 100%) cost $100, 25% markup → sell $125, margin 20% cost $100, 20% margin → sell $125, markup 25% cost $100, sell $125 → markup 25%, margin 20% 25% markup = 20% margin $100 → $125
| Markup | Sell | Margin |
|---|---|---|
| 10% | $110 | 9.09% |
| 20% | $120 | 16.67% |
| 25% | $125 | 20% |
| 50% | $150 | 33.33% |
| 100% | $200 | 50% |
Example: 25% markup = 20% margin. $100 → $125. Profit $25. A 25% margin on the same $100 cost is sell $133.33, not $125.
FAQ
Is 25% markup the same as 25% margin?
No. Markup = profit / cost. Margin = profit / sell price. 25% markup = 20% margin. Cost $100, 25% markup → sell $125, profit $25. Margin is $25 / $125 = 20%, not 25%. People who bid 25% margin when they meant 25% markup underprice the job.
How do I convert markup percent to margin percent (and back)?
Sell = cost × (1 + markup). Margin = markup / (1 + markup). Cost $100 at 25% markup → $100 × 1.25 = $125, margin 0.25 / 1.25 = 20%. The other way: sell = cost / (1 − margin). Cost $100 at 20% margin → $100 / 0.80 = $125, markup 25%. This page is bidirectional: cost + markup%, cost + margin%, or cost + sell.
What if I already know cost and sell price?
Both percents fall out of the same two numbers. Cost $100, sell $125: profit $25, markup $25 / $100 = 25%, margin $25 / $125 = 20%. Sell = cost is 0% markup and 0% margin. Sell below cost is flagged as a loss (negative markup and margin). Empty fields are invalid.
Can margin be 100%?
Not on a positive cost. Margin = profit / sell, so 100% margin means profit equals the sell price and cost is $0. Sell price would be infinite. 100% markup is different and legal: cost $100 → sell $200, which is a 50% margin. This calculator flags 100% (or higher) margin instead of printing a fake price.
Is this a quote, a tax calculator, or a job estimator?
No. It is shop math: markup versus margin on a cost and a sell price. No line items, no sales tax, no hours, no materials takeoff. Job-site calculators (concrete, gravel, mulch, drywall, and the rest) live on the Acorn hub. Money-adjacent pages are hourly salary and paycheck estimate. Business days helps Net 30 invoicing. This page does not write a quote.
Why do contractors mix up markup and margin?
The percents look interchangeable until you work a fixture. $100 → $125 is a 25% markup and a 20% margin. If a shop wants a 25% margin they must sell at $133.33, not $125. The unique angle on this page is that 25% markup is not 25% margin, and the three directions (markup → sell, margin → sell, cost + sell → both) stay in one calculator.