Calculators · Updated 2026-10-30
Markup vs margin: calculate the price you mean
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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.
| Method | Selling price | Markup | Gross margin |
|---|---|---|---|
| Given markup | $130.00 | 30% | 23.08% |
| Given margin | $142.86 | 42.86% | 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.
| Markup | Price | Gross margin |
|---|---|---|
| 15 | $115.00 | 13.04% |
| 25 | $125.00 | 20.00% |
| 30 | $130.00 | 23.08% |
| 50 | $150.00 | 33.33% |
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
Drop a PDF drawing or a STEP file. QuotedPart reads the print, measures the model and prices it in seconds, on default shop rates you can change.
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Free. No account, no email. Priced at our default US rates until you set yours.
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