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Profit Margin Calculator

Enter what a job costs and what you charge, and see the profit, the margin and the markup.

$
$
Profit margin
33.3%
Gross profit
$150
MarkupThe same profit measured against cost.
50%

What this assumes

  • Cost is everything the job consumes: materials and the labour you pay for, not just parts.
  • Prices are compared before tax.

Why this number matters

Profit margin is gross profit divided by the selling price: margin = (price − cost) ÷ price. It is always smaller than the markup on the same job, because markup divides the same profit by the cost instead. A job that costs $300 and sells for $450 makes $150 profit: a 33.3% margin and a 50% markup. Know which one your targets are written in; a business that aims for a 30% margin but quotes a 30% markup earns about 23%.

How it is worked out

  • Gross profit = selling price − cost
  • Profit margin = gross profit ÷ selling price
  • Markup = gross profit ÷ cost

The same formulas run in your browser as you type; nothing you enter is sent anywhere.

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