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Markup is not what you keep.
Adding 30% to your cost doesn’t mean you keep 30% of the price. Put in a job and see the real margin, or start from the margin you want and get the markup that gets you there.
- Markup is a percentage of your cost. Margin is a percentage of the price. Margin is always the smaller number.
- Use your full cost for the job: labor, materials, fees and anything you had to rent or buy.
- This is a planning tool, not accounting advice. Everything runs in your browser.
Labor, materials and anything else it takes.
Price$1,300
Profit$300
Margin you keep23.1%
A 30% markup keeps 23.1% of the price. If you think you keep 30%, the gap on this job is $90.
To keep 30%, mark your cost up by 42.9%.
| Markup | Margin |
|---|---|
| 10% | 9.1% |
| 20% | 16.7% |
| 25% | 20% |
| 30% | 23.1% |
| 40% | 28.6% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50% |
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