Markup calculator
Enter a valid cost and markup to see your sell price.
Markup on cost ≠ margin on the invoice
Markup is how much you add on top of your cost (what crews often say in the van). Margin on sell price is what you keep as profit as a share of what the customer pays — how finance and many software dashboards talk. Same job, two percentages — mixing them up loses real money on bids.
Classic trap
50% markup on cost is only about 33.3% margin on sell price — because the profit is divided by the larger sell price, not by cost. Your tool above shows both so you never quote the wrong story in a change order.
Formula (reference): margin % on sell ≈ markup% ÷ (100% + markup%) × 100%. All math runs in your browser — no server round-trip, no AI call on your numbers.
Key takeaways
- Fifty percent markup on cost is only about thirty-three percent margin on sell price — the tool proves it with your numbers, not slogans.
- Cost-plus pricing is still the fastest sanity check for many residential service jobs before you round up in the CRM.
- Use the numbers here before you type line items into Jobber, Housecall Pro or a spreadsheet template.
- If cost is zero, the math is meaningless — enter a loaded cost that already reflects burden where you can.
- Pair with your real burdened rates from accounting, not guesswork, when bidding tight jobs.
Who built this
ContractorHQ is edited by Bernard Guido — 25+ years in trade operations and software. These utilities follow the same quality bar as our reviews: fast pages, honest disclosure, and tools that stay useful without selling your data.
Frequently asked questions
Why is 50% markup on cost not the same as 50% margin on the price?
Fifty percent markup means you add half of your cost again on top, so sell price is one hundred fifty percent of cost. Margin on sell is profit divided by sell price: fifty divided by one hundred fifty is roughly thirty-three point three percent. Many calculators only show markup — we show both so crews and office stay aligned.
What formula do you use?
Sell price equals cost multiplied by one plus markup divided by one hundred. Gross profit is sell price minus cost. Margin on price is gross profit divided by sell price, expressed as a percentage. This is the standard cost-plus model used in many trade quotes.
Does this include overhead or tax?
No. This calculator only applies the markup you enter to the direct cost you enter. Burdened labor, materials waste, sales tax and card fees should be folded into your cost or handled in your accounting tool before you rely on the number in the field.
Is my data stored?
No server upload runs for the calculation. Values live in your page session until you refresh or leave. For sensitive bids, you can still clear the fields after use.
Why show margin on price as well as markup on cost?
Markup on cost is easy to quote from the shop floor, while margin on price matches how many finance conversations and software dashboards talk about profitability. Showing both reduces confusion when you move from estimate to invoice.