Free contractor tool
Margin to markup calculator
Type a profit margin to get the markup that earns it, or a markup to see the margin you actually keep. A 30% margin needs a 42.9% markup; a 50% markup is only a 33.3% margin. Add a job cost to get the price.
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Margin to markup conversion table
The markup you need is always bigger than the margin you want, and the gap widens fast. Pricing a job at a “30% markup” when you meant a 30% margin leaves you at 23.1%.
| Target margin | Markup needed | Multiply cost by |
|---|---|---|
| 10% | 11.1% | 1.111 |
| 15% | 17.6% | 1.176 |
| 20% | 25.0% | 1.250 |
| 25% | 33.3% | 1.333 |
| 30% | 42.9% | 1.429 |
| 35% | 53.8% | 1.538 |
| 40% | 66.7% | 1.667 |
| 50% | 100.0% | 2.000 |
The formulas
- Margin to markup: markup = margin ÷ (100 − margin) × 100
- Markup to margin: margin = markup ÷ (100 + markup) × 100
- Multiplier: 1 + markup ÷ 100, the same as 1 ÷ (1 − margin ÷ 100)
- Price from cost and margin: price = cost ÷ (1 − margin ÷ 100)
Markup vs. margin: which should a contractor use?
Price with markup, judge with margin. Markup is the easy way to build a quote, because you start from your cost. Margin is how you check that the business makes money, because overhead and profit are shares of what you collect, not of what you spent. Decide the margin you need, convert it here, then build the quote with the markup calculator or the job cost estimator. To check a bid you already sent, use the job profit calculator.
Frequently asked questions
- How do I convert margin to markup?
- Markup = margin ÷ (100 − margin) × 100. For a 30% margin: 30 ÷ 70 × 100 = 42.9% markup. You have to mark your cost up by 42.9% to keep 30% of the price as profit.
- How do I convert markup to margin?
- Margin = markup ÷ (100 + markup) × 100. A 50% markup is 50 ÷ 150 × 100 = 33.3% margin. Margin is always the smaller number, because it is measured against the price, which is larger than the cost.
- What is a 1.35 markup as a margin?
- A 1.35 multiplier is a 35% markup, which is a 25.9% margin (35 ÷ 135). The multiplier is 1 + markup ÷ 100, so multiplying your cost by 1.35 sets the price.
- What price do I charge to hit a target margin?
- Price = cost ÷ (1 − margin ÷ 100). For $1,000 of cost at a 30% margin: $1,000 ÷ 0.70 = $1,428.57. Enter a job cost above to see it worked out.
- Why can’t margin be 100% or more?
- Margin is profit as a share of the price, and profit can never be more than the whole price. A 100% margin would mean the job cost you nothing. Markup has no ceiling: a 200% markup is a 66.7% margin.