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Free tools › Contractors › Profit margin calculator

Free calculator · no sign-up

Profit margin calculator

Find your margin and markup from cost and price — or the price you need to hit a target margin.

✓ Free✓ Works on your phone✓ Any tax rate

Your numbers

Profit margin
Price
Cost
Profit
Margin
Markup
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Margin vs markup

  • Margin = profit ÷ price. It’s the share of what the client pays that you keep.
  • Markup = profit ÷ cost. It’s how much you add on top of your cost.
  • Price for a target margin = cost ÷ (1 − margin). Price from a markup = cost × (1 + markup).
  • Example: cost $750, price $1,000 → profit $250, margin 25%, markup 33.3%.

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Questions

Is a 30% markup a 30% margin?

No. A 30% markup on cost gives a 23.1% margin. To get a 30% margin you need about a 42.9% markup.