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Markup and margin calculator
Put in what a part or a job costs you, then the markup, the margin or the price you want. You see all four side by side, so a 50% markup is never read as a 50% margin.
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Pricing your hours? Use the labor rate calculator.
% on the cost
Price
$375.00
Profit
$125.00
Markup, on the cost
50%
Margin, on the price
33.3%
A 50% markup is a 33.3% margin, not 50%.
Price $375.00, profit $125.00. A 50% markup is a 33.3% margin, not 50%.
Markup is on the cost. Margin is on the price.
The same $125 of profit is 50% of what the part cost you and 33.3% of what the customer pays. Markup tells you what to add; margin tells you what you keep. A shop that wants to keep 30% of the price but marks the cost up 30% keeps 23.1%.
Your cost $250Profit $125
Markup: the profit over your cost. $125 ÷ $250 = 50%
Margin: the profit over the price. $125 ÷ $375 = 33.3%
Markup to margin
| Markup | Margin |
|---|---|
| 10% | 9.1% |
| 20% | 16.7% |
| 25% | 20% |
| 30% | 23.1% |
| 40% | 28.6% |
| 50% | 33.3% |
| 60% | 37.5% |
| 75% | 42.9% |
| 100% | 50% |
| 150% | 60% |
| 200% | 66.7% |
Questions about markup and margin
Pricing your hours? Use the labor rate calculator.
What's the difference between markup and margin?
They measure the same profit two ways. Markup is the profit divided by your cost; margin is the profit divided by the price. A part that costs $250.00 and sells for $375.00 makes $125.00: a 50% markup and a 33.3% margin.
How do I work out the price from a margin?
Divide the cost by what's left once the margin is taken off. For a 25% margin on a $300.00 part: $300.00 ÷ 0.75 = $400.00. Adding 25% to the cost gives $375.00 instead, which is only a 20% margin.
What markup should I put on parts?
Enough to cover what handling parts costs you (ordering, picking up, stocking and warranty returns) and to leave the margin you want. Some shops use a sliding scale, with a bigger markup on small parts than on big equipment. Set the margin you want to keep, and the calculator gives the markup and the price.
Can a margin be 100%?
No. A 100% margin would mean the whole price is profit, which only happens if the part cost you nothing. A markup has no ceiling: a part that costs $50.00 and sells for $200.00 has a 300% markup and a 75% margin.
Is margin the profit I take home?
No. Markup and margin here are gross: what's left after the part or job's own cost, before the techs' time and the shop's overhead come out of it. The labor rate calculator prices the hours so those are covered.
Page updated October 22, 2026.
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