Markup Calculator — from cost to selling price
Enter what it costs and the markup you charge — get the selling price, the profit, and the gross margin that markup really gives you.
Common markups and what they really earn
| Cost | Markup | Selling price | Profit | Actual margin |
|---|---|---|---|---|
| $400 | 25% | $500 | $100 | 20% |
| $400 | 50% | $600 | $200 | 33.33% |
| $400 | 60% | $640 | $240 | 37.5% |
| $400 | 100% | $800 | $400 | 50% |
Notice the pattern: the margin is always smaller than the markup. That's not a rounding quirk — it's because margin divides by the bigger number (price) while markup divides by the smaller one (cost). If your business plan says “we need 40% margins” and your quoting habit says “add 40%,” you are systematically underpricing every job by about 12 points.
Where markup works — and where hourly beats it
Markup shines on materials, parts, and resold products: things with a known cost. Labour is different — there the honest question is what your time must earn, which is the hourly rate calculator's job. Most trade quotes combine both: marked-up materials plus hours at your rate. And to sanity-check the whole picture, the margin calculator reads any finished quote back as a margin.
Then bill it — with the markup already priced in
The selling price this calculator gives you is a pre-tax number: put it on a line in the free invoice generator, and the invoice adds the correct GST/HST or custom tax on top. Materials as one line or itemized, quantities and unit prices per line, PDF on your device — free, unlimited, no account.
Frequently asked questions
How do I calculate markup?
Selling price = cost × (1 + markup%). A $400 part with a 60% markup sells for $640; the $240 difference is your profit. Enter cost and markup above and the price is computed instantly, along with the gross margin that markup actually produces.
What's the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of selling price. A 60% markup is only a 37.5% margin. They're two views of the same dollars — but quoting one when you mean the other changes your price substantially.
What markup should I charge on materials?
Trades commonly mark up materials anywhere from 15% to 100% depending on the item, how much handling and warranty risk it carries, and local practice. Small fittings often carry higher markups than big-ticket equipment. Whatever you choose, apply it consistently and check the resulting margin covers your overhead.
How do I convert a markup to a margin?
Margin = markup ÷ (1 + markup). A 25% markup is a 20% margin; 50% markup is 33.3%; 100% markup is 50% margin. The calculator does this conversion for you every time — the margin line updates with each markup you try.
Should markup be calculated before or after tax?
Before. Mark up your pre-tax cost to a pre-tax price, then charge sales tax (GST/HST or your state rate) on the invoice on top. If you were charged tax on the materials and can recover it as an input credit, your true cost is the pre-tax amount anyway.
How do I show marked-up materials on an invoice?
Usually as a single 'Materials' line at your marked-up price — clients don't need your supplier cost. Itemize the major pieces if the client expects transparency, keeping each at its marked-up unit price. The generator handles per-line quantities and prices either way.
Is this markup calculator free?
Yes — free and unlimited, like every BolInvoice tool. When the price is right, one tap opens the invoice generator with no signup, no watermark, and totals always computed by code.