Margin Calculator
Work backwards from the margin you need to the price you have to charge.
- Price to charge
- $154
- Gross profit
- $54
- Equivalent markup
- 53.8%
What this assumes
- A margin of 100% or more is impossible; the field is capped below it.
Why this number matters
Pricing from a target margin is the right direction to work: decide what the job has to earn, then find the price, rather than setting a price and discovering the margin afterwards. It also makes a discount honest. Taking 10% off a job priced at a 35% margin does not cost you 10% of the profit, it costs you nearly a third of it, and seeing the margin move as you change the price is the fastest way to stop agreeing to discounts that quietly turn a good job into a break-even one.
How it is worked out
- Price to charge = cost ÷ (1 − target margin)
- Gross profit = price − cost
- Equivalent markup = gross profit ÷ cost
The same formulas run in your browser as you type; nothing you enter is sent anywhere.
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Send a quote that can be accepted on a phone, and invoice it in one click when it is. Quoting: how it works.
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