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.
| Target Margin | Required Markup | Selling Price | Profit |
|---|---|---|---|
| 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.