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Markup vs Margin Calculator
A 50% markup is not a 50% margin — and pricing as if they're the same quietly eats your profit. Enter your cost, then whichever figure you actually know, and this works out the rest.
What's the difference between markup and margin?
Both describe your profit, but against different bases. Markup is your profit as a percentage of the cost — how much you add on top of what you paid. Margin is that same profit as a percentage of the selling price — how much of the money coming in is actually yours to keep. Because the selling price is always bigger than the cost, the margin percentage is always smaller than the markup percentage for the same job.
How do I work out my selling price from a margin?
Divide, don't multiply. Selling price = cost ÷ (1 − margin/100). So for a 30% margin on a £100 cost: £100 ÷ (1 − 0.30) = £100 ÷ 0.70 = £142.86. A common and costly mistake is to add 30% to the cost instead (£130), which only gives you a 23% margin — quietly short-changing yourself on every sale.
Is a 50% markup the same as a 50% margin?
No — and this is the mistake that catches most people out. A 50% markup on a £100 cost gives a £150 selling price, and £50 profit out of £150 is only a 33.3% margin. To actually earn a 50% margin you'd have to double your price to £200. Confusing the two means you think you're making far more than you are.
Does this tool store my details?
No. This calculator runs entirely in your browser. Nothing you type is uploaded, saved or sent anywhere — refresh the page and it's gone.
What's next once I've got my margin right?
Once your pricing reflects the margin you actually want, the next question is volume — how many jobs at that margin you need each month to cover your overheads. Our break-even calculator takes the price you've settled on here and works out that number for you.
Please note: this tool gives a guide or estimate only. It may not be 100% accurate and is not professional advice — always check the figures before you rely on them. Everything you type stays in your browser — nothing is uploaded, saved or sent anywhere.
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