Turn material cost into a selling price and see both the markup and the margin. Enter your cost and a markup percentage.
Selling Price
—
Cost plus markup.Usage Tip
Pick margin or markup and stick with it across every quote. To turn a target margin into a markup: markup% = margin% ÷ (100 − margin%) × 100.
THE MATH
Selling price = cost × (1 + markup%)
Profit = selling price − cost
Margin% = profit ÷ selling price × 100
Profit = selling price − cost
Margin% = profit ÷ selling price × 100
Markup is profit as a percentage of your cost; margin is the same profit as a percentage of the selling price. They are always different numbers for the same sale.
Example: buy at $100, mark up 50% to sell at $150 — that is a 50% markup but only a 33% margin.
Example: buy at $100, mark up 50% to sell at $150 — that is a 50% markup but only a 33% margin.
Confusing markup with margin is a classic costly mistake — a 50% markup is a 33% margin, a 100% markup is a 50% margin.
To hit a target margin, the markup must be higher than that margin, and the gap grows as margins rise.
Mark up materials to cover handling, waste, returns, and overhead — not just profit; reselling at cost loses money once time is counted.
To hit a target margin, the markup must be higher than that margin, and the gap grows as margins rise.
Mark up materials to cover handling, waste, returns, and overhead — not just profit; reselling at cost loses money once time is counted.