Free Markup Calculator

Calculate markup, margin, profit, and revenue instantly. Enter any two values to get the rest.

100% FreeInstant ResultsNo Sign-up
$

Your cost

%

% added to cost

%

% of revenue

$

Selling price

$

Your profit

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Step-by-Step Guide

How to Use the Markup Calculator

1
Enter Your Cost
Enter the cost of your product or service in the $ Cost field. This is your cost of goods sold.
2
Set Your Markup Percentage
In the % Markup field, enter the percentage markup you want to apply. For example, enter 30 for a 30% markup.
3
View Calculated Results
The calculator will automatically populate the % Margin, $ Revenue, and $ Profit fields.
4
Understand Your Outputs
% Margin shows your profit margin percentage. Revenue shows the final selling price. Profit shows your total profit amount after markup.
5
Test Different Scenarios
Test different markup percentages and see how they impact profit margin and revenue.
6
Back-Calculate If Needed
You can also enter your target revenue or profit first, and the calculator will back-calculate the required markup percentage.
7
Analyze Relationships
Use these outputs to understand the relationship between markup, cost, revenue and profit.

What is Markup?

Markup refers to the percentage difference between the cost of a product and its final selling price. It represents the profit margin added on top of the base cost of goods sold.

For example, if a product costs you $100 to manufacture or purchase, and you sell it for $150, your markup rate is 50%. This means the selling price is 150% of the original cost. In other words, you have "marked up" the product by 50% from cost to arrive at the sales price.

So in simple terms, markup is the amount added on top of cost to determine the retail or selling price. It directly contributes to your profit margin. Setting the right markup involves balancing profit goals with market competitiveness.

The Markup Formula
Markup Price = Cost + (Cost x Markup %)
Cost of Goodsthe cost of your contracting service
Markup %the desired profit expressed as a percentage of the cost
Example
If your contracting services cost $100 and the desired markup percentage is 50%:
Markup Price = $100 + ($100 x 50%) = $100 + $50 = $150

Industry-Specific Markup Percentages

IndustryMarkup RangeVisual
Construction10% - 30%
~20%
Landscaping15% - 30%
~23%
Handyman15% - 35%
~25%
Electrical15% - 35%
~25%
Painting20% - 35%
~28%
Flooring20% - 35%
~28%
HVAC20% - 35%
~28%
Plumbing20% - 40%
~30%
Roofing20% - 40%
~30%
Carpenter20% - 40%
~30%
Why Use It

Features of Our Markup Calculator

🎯

Hit Profit Goals

The calculator outputs clearly show projected profit from any given markup. Adjust percentages to reach your profitability goals.

🔄

Test Different Markups

Easily play with different markup scenarios and pricing alternatives. Quickly see how various rates impact profitability.

👍

User-Friendly

Easy learning curve for beginners and experienced users alike. Use the markup calculator effortlessly.

⚡

Quick Results

Instantly calculate recommended selling prices from any cost input and desired markup percentage. No waiting time.

Why Contractors Love It

Benefits of Using a Markup Calculator

1
Efficiency Gain
Saves time and eliminates chances of human errors when calculating markup percentage and final selling price. Contractors have more time for winning new jobs.
2
Improved Accuracy
Makes it simple to modify markup % in response to market changes. Stay profitable and competitive in a changing market.
3
Better Pricing Strategy
Proper markup ensures accurate pricing, maximizing profits while staying competitive. Builds trust with customers.
4
Usability
User-friendly and simple to use, even with little technical knowledge. Calculate markup quickly without difficulty.
5
Cost-Effective
Many calculators are free or low-cost. Begin using markup calculators without significant investment.
Expert Advice

Tips for Setting Markup Percentages

Research Competitors: Analyze how competitors price similar products and their expected profit margins. Match or slightly undercut prices.
Factor in Uniqueness: Consider product uniqueness, positioning, demand levels, and target consumer. Unique products support higher markups.
Account for Other Costs: Factor in all costs beyond manufacturing - shipping, packaging, taxes, etc.
Evaluate Volume Discounts: At higher order volumes, bulk discounts often apply. Ensure markup accommodates volume-based cost reductions.
Test Different Rates: Model different markup scenarios and price points. Experiment to find optimal balance of profitability and affordability.
Key Differences

Markup vs Gross Profit Margin

Feature
Markup
Gross Margin
Definition
% added to cost to get selling price
% of revenue exceeding cost of goods
Purpose
Determines the final selling price
Determines business profitability
Expression
Expressed as % of cost
Expressed as % of revenue
Calculation Basis
Uses cost and gross profit
Uses all business costs

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Frequently Asked Questions

Yes, you can use the markup calculator for free through InvoiceOwl.
The desired markup percentage is the amount by which your service cost is increased to determine its selling price. For example, if a contractor has a $100 cost and wants a 20% markup, the total would be $120.
Markup is the percentage by which cost is increased to determine selling price. Profit margin is the money your business makes after deducting cost from selling price, expressed as a percentage of the selling price.
The markup formula is: (Selling Price - Cost) / Cost = Markup. To find selling price: Cost + (Cost x Markup Percentage) = Selling Price.
Markup percentages vary by industry. Construction typically uses 10-30%, electrical and handyman 15-35%, HVAC and painting 20-35%, and plumbing and roofing 20-40%.
The accuracy depends on the accuracy of data you input. If the cost added is accurate, the calculator's results will be accurate.
Yes, if the calculator covers all costs related to your services. It works for construction, electrical, plumbing, HVAC, painting, and more.
Limitations include: accuracy depends on data input, scope limited to costs entered, and competitive markets may affect estimations.

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