Work out what to charge before you quote it.
A free markup calculator from InvoiceSonic, the invoicing app for tradies and small businesses. Percentages work in any currency — AUD, USD or GBP — so enter what the job or product costs you and the markup you want. You get the selling price, the profit in dollars, and the margin percentage — which is not the same number as the markup, and is the single most common pricing mistake.
Markup is measured against your cost, margin against your selling price. They are never the same number, and confusing them always underprices the job.
| Markup | Margin | $1,000 cost sells for |
|---|---|---|
| 10% | 9.1% | 1,100.00 |
| 15% | 13.0% | 1,150.00 |
| 20% | 16.7% | 1,200.00 |
| 25% | 20.0% | 1,250.00 |
| 30% | 23.1% | 1,300.00 |
| 40% | 28.6% | 1,400.00 |
| 50% | 33.3% | 1,500.00 |
| 60% | 37.5% | 1,600.00 |
| 75% | 42.9% | 1,750.00 |
| 100% | 50.0% | 2,000.00 |
| 150% | 60.0% | 2,500.00 |
| 200% | 66.7% | 3,000.00 |
Markup % = (price − cost) ÷ cost × 100. Margin % = (price − cost) ÷ price × 100. To convert: margin = markup ÷ (100 + markup) × 100.
Markup % = (selling price − cost) ÷ cost × 100. To go the other way and find a selling price from a markup: selling price = cost × (1 + markup ÷ 100). A $60 cost with 50% markup sells for $90.
Markup is profit measured against your cost; margin is the same profit measured against the selling price. They are never equal. A 50% markup is a 33.3% margin. A 100% markup is a 50% margin. Quoting a 30% markup when you meant a 30% margin leaves roughly 10% of the job's value on the table every time.
Margin % = markup ÷ (100 + markup) × 100. And back the other way: markup % = margin ÷ (100 − margin) × 100. The table on this page has the common values worked out.
It depends on what the markup has to cover. For trade and service work where materials are passed through, 10–25% on materials is typical. For labour-driven or specialised work, 50–100% is common because the markup is also paying for your unbilled time — quoting, travel, chasing payment. If your markup only covers direct costs, you are working for nothing. These are general ranges, not benchmarks — they vary widely by trade, region and contract.
Yes, and say so plainly. Sourcing, collecting, carrying and warranting materials is real work, and a line item that reads 'materials + 15%' is far easier for a client to accept than an unexplained round number. Some contracts cap material markup, so check yours.
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