Calculators · Updated 2026-10-30

Markup vs margin: calculate the price you mean

Your part priced in about 90 seconds, no account.

A $100 cost with 30% markup sells for $130 and earns 23.08% gross margin. To earn 30% gross margin on the same cost, charge $142.86. Enter either percentage below; the two result rows deliberately show different prices.

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Convert markup and gross margin

Gross margin = (price − cost) ÷ price. Markup = (price − cost) ÷ cost. These are quote-level calculations before any omitted overhead or tax.

Two independent pricing methods
MethodSelling priceMarkupGross margin
Given markup$130.0030%23.08%
Given margin$142.8642.86%30%

Use the denominator the owner intended

Markup divides the added dollars by cost. Margin divides those same dollars by selling price. A quote reviewer asking for thirty points of margin may mean a different price from an estimator adding thirty percent to the cost rollup. Write the basis beside the percentage on the rate card, then check a known $100 example before changing the shop’s settings. The converter assumes a positive cost and a target margin below 100%; a 100% margin on a nonzero cost has no finite selling price.

Check purchased lines without averaging percentages

Suppose material costs $500 and carries 15% markup, while outside processing costs $200 and carries 25%. Those selling lines are $575 and $250. Combined cost is $700, combined revenue is $825 and combined gross margin is $125 ÷ $825 = 15.15%. Averaging 15 and 25 would conceal the different dollar weights. Labor at a selling rate may already include overhead and return, so decide whether quote-wide markup applies to that rate before applying another percentage.

Same $100 cost, different pricing instructions
MarkupPriceGross margin
15$115.0013.04%
25$125.0020.00%
30$130.0023.08%
50$150.0033.33%

Separate quote margin from the month’s net profit

The result includes only costs you enter. If machine hours omit paid idle time, rent, estimating or inspection, the apparent quote margin must still pay those expenses. A healthy percentage on a badly estimated cycle can vanish after production. Compare actual material invoices, setup hours and outside-service charges against the quote before concluding that a pricing percentage is too small. Use the same cost definition across jobs so the comparison means something.

Price one of your own parts

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Your STEP file or PDF drawing

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