Vorkeon

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Markup vs margin calculator for contractors

Turn your markup into your real profit margin, and see the price to charge. 25% markup is only a 20% margin.

Your profit margin

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Margin is the share of the price you keep. Markup is what you add on top of cost.

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Questions

What is the difference between markup and margin?

Markup is the percentage you add on top of your cost. Margin is the percentage of the final price that is profit. A $1,000 job with 25% markup sells for $1,250: the $250 profit is 25% of the cost but only 20% of the price.

Why does it matter?

If you need a 25% margin to cover overhead and profit, a 25% markup is not enough. You need about 33% markup.

Is anything saved or sent?

No. The maths runs in your browser.