TradeLedge

Same cost, different percentage bases

Margin & markup calculator

Convert cost into a pretax selling price using margin or markup. See the equivalent percentages and separate tax from profit.

Pretax selling priceUSD 1,000.00
Planned profitUSD 200.00
Margin / markup20% / 25%

This public example has no customer fields or saved job data. Use the private workspace for a full job and a selected currency.

Margin measures profit as a share of the selling price. Markup measures profit as a share of cost. Choose the method deliberately; equal percentages produce different prices.

The formulas

Target margin: price = cost ÷ (1 − margin). Target markup: price = cost × (1 + markup). Enter percentages as percentages; a 25% margin uses 0.25 in the formula.

Illustrative USD 800.00 pricing cost
MethodPretax pricePlanned profitEquivalent
20% marginUSD 1,000.00USD 200.0025% markup
20% markupUSD 960.00USD 160.0016.67% margin

Limits that matter

A target margin must be below 100%. At zero price, margin is unavailable. At zero cost, markup is unavailable. Round the final price to the selected currency's minor unit, then calculate money profit from the rounded price.

These are planned job figures based on included costs, not guaranteed net business profit. Collected tax is excluded. Price a complete local job or read the worked example.