calcs.homes
calcs.homes
Work out selling price from cost and markup percent, or work out markup and margin percent from cost and selling price — useful for material markup, contractor pricing, or resale.
Markup is profit as a % of cost; margin is profit as a % of selling price.
In "From markup %" mode, selling price is cost × (1 + markup % ÷ 100) — a $100 cost with a 40% markup sells for $140. In "From selling price" mode, we work backward: markup % is profit divided by cost, and margin % is profit divided by selling price, both read off the same cost and price you enter.
Markup and margin describe the identical dollar profit using two different denominators, which is why margin is always the smaller number at the same profit level — that $40 profit is a 40% markup on cost but only a 28.6% margin on price. Contractors and retailers track both because markup is the easier number to apply when pricing a job from cost, while margin is what actually determines profitability against total revenue.
Markup divides profit by cost; margin divides profit by selling price. A 50% markup is only a 33.3% margin — they're never the same number except at 0%.
Selling price = cost × (1 + markup % ÷ 100). A $100 cost with a 40% markup sells for $140.