Profit margin and markup calculator
Two numbers in, three out: gross profit, margin as a share of the price, and markup as a share of the cost.
- Gross profit
- 400.00
- Markup on cost
- 66.7%
- Profit margin
- 40.0%
Margin and markup are not the same number
Margin divides profit by the price. Markup divides the same profit by the cost. A job costing 600 sold at 1,000 carries a 40% margin and a 66.7% markup — identical money, very different percentages. Job quoting usually happens in markup ("cost plus 30%"), while accounts are read in margin, which is exactly how trades end up quietly quoting below target.
Include everything in the cost
- Materials, including the offcuts and the wastage
- Your own labour hours at the rate you actually need
- Subcontractors and hire charges
- Travel, disposal and site costs
Costs left out of the calculation don't disappear — they come out of the margin.
Use it before the quote goes out
Price the job here, then send the figure with the quote generator so the number the client accepts is the one that clears your margin. If costs are still uncertain, an estimate with written assumptions is the safer document.