Markup & Margin Calculator.
Enter your job cost and target profit to get the price to quote — and see markup % and margin % side by side, so you never undercharge again.
Your job costs
Profit as a % of the price you charge
The catch most people miss
Markup and margin are not the same number. On this job a 42.9% markup only gives you a 30.0% margin. Charge by margin if you want a specific percentage of every invoice to be profit.
Markup vs margin: the difference that costs trade businesses money
Markup and margin both describe the gap between what a job costs you and what you charge for it — but they measure it against different numbers, and confusing the two is one of the most common ways trade and service businesses quietly undercharge.
- Markup is profit as a percentage of your cost:
(Price − Cost) ÷ Cost. - Margin is profit as a percentage of your selling price:
(Price − Cost) ÷ Price.
The trap: add “50% markup” and it feels like you’re making 50% profit. You’re not — a 50% markup is only a 33.3% margin. If you need a specific percentage of every invoice to land as profit, you have to price by margin.
Worked example
A job costs you R1,000 in materials and labour, and you want a 30% margin:
- Price to quote = 1,000 ÷ (1 − 0.30) = R1,428.57
- Profit = R428.57
- Equivalent markup = 42.9% — you had to add ~43%, not 30%, to hit a 30% margin
Run it the other way and the point lands even harder: a “40% markup” is only a 28.6% margin. Small gaps like this, repeated across every quote, are the difference between a busy business and a profitable one.
Want the full breakdown, a markup-to-margin conversion table, and how to price by margin? Read Markup vs Margin: Why Your Quoted Price Isn’t Your Profit Percentage.
Frequently asked questions
What is the difference between markup and margin?
Markup is your profit expressed as a percentage of what the job costs you. Margin is your profit expressed as a percentage of the price you charge the customer. Because the denominator is different, the same job produces two different percentages — a 50% markup is only a 33.3% margin.
How do I calculate the price to charge from a target margin?
Divide your total job cost by (1 minus the margin as a decimal). For example, a R1,000 job at a 30% target margin is 1000 ÷ (1 − 0.30) = R1,428.57. This calculator does it for you and also shows the equivalent markup.
Should I price my jobs by markup or by margin?
Price by margin if you want a predictable percentage of every invoice to be profit — margin is what actually protects your bottom line. Markup is fine as a quick rule of thumb, but only if you know the margin it produces, otherwise it is easy to undercharge.
Does this calculator include VAT or sales tax?
Yes. Pick your currency and the calculator applies a sensible default tax rate for that region (for example 15% VAT in South Africa or 20% VAT in the UK), which you can override. Tax is calculated on the selling price and does not affect your margin, since it is collected on behalf of the tax authority.
Apply Your Margin Automatically on Every Quote
Doing this per job in a spreadsheet is where mistakes creep in. Exequtech builds your target margin into quoting, then turns the quote into a job card and invoice — no re-keying.
See How Exequtech Works