Job Price and Margin Calculator
Enter a job's real cost, pick markup or margin, and see the price to charge and the profit either way.
Margin has to be under 100 percent. Try a smaller number.
That price is a 0% markup on cost, and a 0% margin on the sale.
How this calculator works
Markup and margin both describe profit, they just start from a different number. Markup is profit as a percent of what the job cost you. Margin is profit as a percent of what you charged for it. The same job can have a 100 percent markup and only a 50 percent margin at the very same price, which is why the two get confused so often.
Markup pricing
Price equals cost times one plus your markup percent, divided by 100. A $200 job at a 50 percent markup prices at $300.
Margin pricing
Price equals cost divided by one minus your margin percent, divided by 100. A $200 job at a 50 percent margin also prices at $400, not $300, which is the trap most people fall into.
Profit either way
Profit is simply price minus cost, no matter which percent you started from. The calculator above always shows both the markup and margin percent for the price it lands on.
Markup versus margin, in plain terms
A 50 percent markup and a 50 percent margin are not the same price. Markup is calculated on cost, margin is calculated on the price you charge, and price is always the bigger number, so margin percent is always lower than markup percent for the same job. Pricing off margin instead of markup is a common, easy mistake, and it quietly underprices every job you quote that way.
There is no single right markup or margin for every trade. What a cleaning company builds into a quote is not what an HVAC company builds in, and both should account for materials, labor, overhead, and a real profit on top, not just materials and labor at cost. Use the calculator above with your own real numbers rather than a rule of thumb from somewhere else.
Common questions
What is the difference between markup and margin?
Markup is profit as a percent of the job's cost. Margin is profit as a percent of the price you charge. Because price is always higher than cost, margin percent is always lower than markup percent for the same job. A 100 percent markup and a 50 percent margin describe the exact same price.
How do you calculate markup for a service business?
Add up the real cost of the job, materials plus labor plus a fair share of overhead, then multiply that cost by one plus your target markup percent. A $200 job at a 40 percent markup prices at $280.
How do you calculate margin for a service business?
Divide the job's cost by one minus your target margin percent. A $200 job at a 40 percent margin prices at $333.33, higher than the same target under markup pricing, since margin is calculated against the price, not the cost.
What is a good markup for a small service business?
It depends on the trade, your overhead, and how much of the work is materials versus labor. Many home service businesses target somewhere in the range of 30 to 60 percent markup, but the only way to know your own number is to work it out from your real costs, not borrow someone else's.
Is this calculator free to use?
Yes. The calculator is free and does not require an account. Entering your email is only needed if you want a copy of your numbers sent to your inbox, and that is entirely optional.
Zebu does this math on every quote automatically.
Set your default markup once, and every price you quote already includes it. Free 14 day trial, no credit card required.
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