LoadingLoadingLoadingLoadingEnter the price you're charging and what it costs you. We'll show you the profit, the margin (% of price), and the markup (% of cost) — the three numbers most trades businesses get muddled.
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Tip: margin and markup are not the same. A 50% margin is a 100% markup. Most quoting software gets this wrong somewhere along the chain.
Profit
£400.00
Margin (% of price)
40.00%
The percentage of what you charge that's profit.
Markup (% of cost)
66.67%
The percentage you add on top of the cost.
Calculations are for guidance only and don't account for overhead allocation, VAT or finance costs.
A 50% margin is not the same as a 50% markup. The classic mistake: you want a 30% profit margin, so you add 30% to the cost. That gives you a 30% markup, which is only a 23% margin. By the time you've quoted ten jobs that way, the difference is real money.
Margin is profit expressed as a percentage of what the customer pays. Markup is profit expressed as a percentage of what it cost you. They tell you different things, and using the wrong one in pricing decisions is one of the quieter sources of underearning in service businesses.
Calculators and generators we built for UK service businesses. All free, all in-browser, no signup.
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