Markup vs margin
Markup is how much you add on top of your cost: profit ÷ cost. Margin is how much of the price you keep: profit ÷ price. If materials cost 400 and you charge 500, your markup is 25% but your margin is 20%.
Markup to margin at a glance
| Markup | Margin | A cost of 100 becomes |
|---|---|---|
| 10% | 9.1% | 110 |
| 20% | 16.7% | 120 |
| 25% | 20% | 125 |
| 30% | 23.1% | 130 |
| 50% | 33.3% | 150 |
| 100% | 50% | 200 |
Why it matters
Mixing the two up is one of the most common pricing mistakes. If you aim for a 30% margin but add a 30% markup, you only keep 23% — on every job. Decide which one you are targeting, then use the calculator to check.