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Profit margin and markup calculator
Enter what you charge and what the job costs you to see your profit, margin and markup, and the price you need for the margin you want.
Profit margin is profit as a share of the price; markup is profit as a share of the cost. A job that costs £600 and sells for £800 makes £200: a 25% margin and a 33% markup. For a target margin, divide the cost by (1 − the margin).
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Start freeHow it works
Profit = price − cost · Margin = profit ÷ price · Markup = profit ÷ cost
Price for a target margin = cost ÷ (1 − target margin)
Worked example
You charge £5,000 for a job that costs you £3,200. Profit is £1,800: a 36.0% margin and a 56.3% markup. For a 35% margin on the same cost, charge £4,923.08.
Margin is not markup
| Markup on cost | Margin on price |
|---|---|
| 10% | 9.1% |
| 20% | 16.7% |
| 25% | 20.0% |
| 33.3% | 25.0% |
| 50% | 33.3% |
| 100% | 50.0% |
Adding 25% to materials gives you a 20% margin on them, not 25%. Mixing the two up is how jobs that looked profitable end up at break-even.
Questions
What is a good profit margin for a trade job?
It varies by trade and job size. Work out the margin you need to cover your overheads and leave a profit, then check every quote against it.
Should I count my own time in the cost?
Yes, at the rate you'd pay someone else to do it. Otherwise the margin looks better than it is.
Should I use prices with or without tax?
Without. Tax you collect isn't your money, so leave it out of both price and cost.
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