Free tool
Markup and margin calculator
Turn what something costs you into a selling price with a markup or a margin, or see the margin and markup on a price you already charge.
Markup is the profit as a share of your cost. Add it to the cost to get the price.
Your price
Cost $80.00, price $100.00.
- Profit
- $20.00
- Margin
- 20%
- Price
- $100.00
Money is rounded to the cent and percentages to two places, half away from zero.
How it works
Pick what you know, read the rest
- 01
Choose what you know
A cost and a markup, a cost and a margin, or a cost and the price you sell at.
- 02
Enter two numbers
Costs and prices in dollars, markup and margin in percent.
- 03
Read the result
The price, the profit, and the margin or markup that goes with it.
Markup and margin
The same profit, two different percentages
Markup is profit over cost
Buy for $80, sell for $100: the profit is $20, and $20 over the $80 cost is a 25% markup. Price = cost × (1 + markup).
Margin is profit over price
The same $20 profit over the $100 price is a 20% margin. Price = cost ÷ (1 − margin). A margin is always smaller than the markup on the same sale.
Why it matters
Mixing them up underprices the job: a 25% markup keeps only 20% of the price. If you think in margins, use the margin mode.
Labor counts as cost
For a service, include your own time at your hourly rate in the cost, as well as materials, so the markup is profit on top of your pay.
Put it on an invoice
From the number to the document
Questions
Something else? Write to support@sumocat.app.
What is the difference between markup and margin?
Markup compares the profit with the cost; margin compares it with the price. Buying for $80 and selling for $100 is a 25% markup and a 20% margin.
How do I calculate a price from a margin?
Divide the cost by one minus the margin. For a 30% margin on a $45.50 cost, $45.50 ÷ 0.70 = $65.00.
What markup should I use?
It depends on your trade, your costs and what clients in your area pay. Start from the margin you need to cover overhead and profit, then check it against what you charge today.
Can Sumocat remember my prices?
Yes. Saved items in the Sumocat app keep the prices you use most, so each estimate starts from them. A free account is all you need.
Send the invoice.
Get paid.
- Free to download
- No caps on invoices
- Works offline