Markup and margin calculator
Mark a part up by fifty percent and you keep a third, not half. This shows both numbers at once so the one you quote is the one you meant.
Markup is measured against what you paid. Margin is measured against what the customer paid. They answer different questions, and mixing them up is one of the most expensive small mistakes in the trades. A part that cost you a hundred dollars and sells for a hundred and fifty carries a fifty percent markup and a thirty three percent margin.
Put in your cost and either the markup you apply or the price you want to charge. You get the price, the markup, the margin and the money you actually keep on that line. Do it once for parts and once for labor and you will know which half of the job is carrying the other.
Everything runs in the page. Nothing is stored, nothing is sent, and you can leave it open on the phone while you price a job at the supply house counter.
Questions about markup and margin
The difference, in plain words.
What is the actual difference?
Markup is the profit as a share of your cost. Margin is the profit as a share of the price the customer pays. The same job has two different percentages, and margin is always the smaller one.
Which should I use when quoting?
Price with markup, because you start from a cost. Judge the job with margin, because that is what is left of the money that came in.
What markup is normal on parts?
It varies by trade and by part, and anyone who gives you one number is guessing. Work from the margin you need to keep the doors open and price backwards from there.
Does it handle labor too?
Yes, if you know what an hour costs you. Put your cost per hour in as the cost and it tells you what to charge and what you keep.
Free tools you can use right now
Price it once, not on every quote.
A price list with your markup already in it is one of the first things you set up in Foldrule.