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Profit Margin & Markup Calculator

See your profit, margin, and markup from any cost and price — and the price you need to hit a target margin. Free, no signup, your numbers stay in your browser.

Profit
$40.00
Margin
40.0%
Markup
66.7%

Margin and markup are not the same number: this job is a 66.7% markup but only a 40.0% margin. Quote on margin so a fat-looking markup does not hide a thin profit.

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How to use this margin & markup calculator

Enter your cost for a job or unit and the price you charge, and the tool shows your profit, your margin (profit as a share of price), and your markup (profit as a share of cost). Want to work backward? Enter a target margin and it returns the price you need to hit it.

Margin vs. markup — the difference that costs you money

A worked example

A job costs you $60 and you charge $100. That is $40 of profit — a 66.7% markup but only a 40% margin. If you thought "40% markup" was your target and priced at $84, you would actually be running a 28.6% margin. Quoting on margin keeps a healthy-looking markup from hiding a thin profit.

Price every job to keep what you need

Pick the margin your business needs to cover overhead and profit, then price backward from it on every bid. Pair this with the markup vs. margin guide, check the whole picture with the break-even calculator, and build the quote itself with the free estimate templates.

Frequently asked questions

What is the difference between margin and markup?

Markup is profit as a percentage of your cost; margin is profit as a percentage of your price. They describe the same dollar of profit from two directions, so the numbers differ: a 50% markup is only a 33% margin. Contractors who quote on markup often make less than they think — this tool shows both from your cost and price.

How do I calculate profit margin?

Margin = (price − cost) ÷ price, as a percentage. If a job costs you $60 and you charge $100, your profit is $40 and your margin is 40%. Enter your cost and price above and the calculator returns profit, margin, and markup at once.

How do I price a job to hit a target margin?

Divide your cost by (1 − the margin you want). To make a 40% margin on a $60 cost, price it at $60 ÷ 0.60 = $100. Enter a target margin above and the tool gives you the price — and the markup that margin works out to.

Why should I quote on margin instead of markup?

Because margin is the share of every dollar you keep, and it is easy to fool yourself with markup. "I added 50%" sounds healthy, but it is only a 33% margin — a third of the price. Setting a target margin and pricing backward from it protects your profit on every job.

Is this margin calculator free?

Yes. It is free and unlimited, and your numbers stay in your browser — nothing is uploaded. Use it to sanity-check a bid before you send it.

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