Markup and margin describe the same price from different starting points. Markup is profit divided by cost; margin is profit divided by selling price. Enter your unit cost and markup above to avoid confusing the two when pricing a quote or invoice.
The quantity field scales the result without changing the unit economics. Use the unit selling price as the rate on your quote or invoice, and retain the calculation with your job-cost notes.
Markup formula
Selling price = cost × (1 + markup percentage). A $100 cost with a 25% markup produces a $125 selling price and $25 unit profit. The gross margin is 20%, not 25%, because it is measured against the $125 selling price.
This is a gross calculation before overhead, tax, payment fees and other business costs. Include those costs in the cost input or check the final price against your required net margin.
When to use markup vs margin
Markup is convenient when a policy says to add a fixed percentage to materials or subcontractor cost. Margin is better for judging the health of the final sale. Always confirm which term a client, spreadsheet or pricing rule uses before applying a percentage.
Turn the result into a real document
The calculator is for the math. Use the free generator to itemize the work, add customer details and download a PDF, Word or Excel file.
Create an invoiceContinue through the invoice workflow
Frequently asked questions
What is a 50% markup on $100?
The selling price is $150, the profit is $50 and the gross margin is 33.33%.
Is a 20% markup the same as a 20% margin?
No. A 20% markup on cost produces a 16.67% margin on the selling price.
Does markup include sales tax?
Normally no. Calculate the pre-tax selling price first, then apply sales tax on the quote or invoice according to the rules for the sale.