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Contractor Ledger

Profit Margin vs. Markup Calculator

Use this when you know a project cost or selling price and want to understand the profit. Margin is profit as a share of the selling price; markup compares profit with cost.

Enter the cost and price, or switch to required-price mode. The result updates as you change the values.

Profit Margin vs. Markup Calculator

Distinguish margin (percentage of revenue) from markup (percentage on cost)

Mode A: Enter Known Project Values
All direct & overhead expenses
$
Final price charged to client
$

How Margin and Markup Work

Margin measures profit against selling price; markup measures profit against total cost.

Profit Margin: (Profit ÷ Selling Price) × 100
Markup: (Profit ÷ Total Cost) × 100
Required Price: Cost ÷ (1 − Target Margin % ÷ 100)

A 25% markup on $100 cost produces a $125 selling price and a 20% margin.

Net Profit Generated$25.00
Gross Profit Margin:20.0%Yield on Revenue
Applied Markup:25.0%Markup on Cost
Job Cost Basis:$100.00
Billed Selling Price:$125.00

Margin to Markup Conversion Matrix

Selling prices and profits assume a $1,000 cost.

Required markup, selling price, and profit for common target margins on a $1,000 cost basis.
Target MarginRequired MarkupSelling PriceProfit
10.00%11.11%$1,111.11$111.11
15.00%17.65%$1,176.47$176.47
20.00%25.00%$1,250.00$250.00
25.00%33.33%$1,333.33$333.33
30.00%42.86%$1,428.57$428.57
40.00%66.67%$1,666.67$666.67

Calculated profit reflects only the cost and selling price entered. It excludes expenses, taxes, or fees not included in those amounts; currency results are rounded to cents.