PrycebookMarkup or margin? See both.
Enter your cost and one other number: the price you charge, the markup you add, or the margin you want to keep. You get the price, the markup, the margin and the profit.
Your numbers show up here
Fill in one of the three forms and press Calculate. The page address keeps your numbers, so you can bookmark it or send it to your business partner.
Markup to margin, at a glance
A markup is always a bigger number than the margin it leaves.
| Markup on cost | Margin you keep |
|---|---|
| 10% | 9.09% |
| 15% | 13.04% |
| 20% | 16.67% |
| 25% | 20% |
| 30% | 23.08% |
| 40% | 28.57% |
| 50% | 33.33% |
| 75% | 42.86% |
| 100% | 50% |
| 150% | 60% |
| 200% | 66.67% |
Margin = markup ÷ (1 + markup), rounded to the nearest hundredth of a percent.
Why the two get mixed up
Same profit, two different percentages.
Markup is on cost
Markup is profit divided by what the item costs you. Cost $100, sell at $125, and the markup is 25%.
Margin is on price
Margin is profit divided by what the customer pays. The same $25 on a $125 price is a 20% margin. This is the number your bank and your accountant look at.
Why it costs money
Add 30% to cost thinking you will keep 30%, and you keep about 23%. To keep a 30% margin you need a markup of about 43%.
Related
Price every job with the margin showing
Set your target margin once in Settings. Every quote you build from a Prycebook price book shows its margin as you go, and warns you when a job slips under your target.
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