Markup vs margin calculator ESTIMATE
Start from cost and either a selling price, a markup on cost, or a margin on price.
Result ESTIMATE
The pair of formulas
Markup answers “how much did I add to cost?” Margin answers “how much of the price is profit?” On a $100 cost and a $150 price, profit is $50. Markup is $50 ÷ $100 = 50%. Margin is $50 ÷ $150 = 33.33%. Quoting a customer “50% margin” when you meant 50% markup prices the job too low.
Price from markup = Cost × (1 + markup)
Price from margin = Cost ÷ (1 − margin)
A pricing check, not a strategy
Neither percentage knows about discounts, shipping you eat, card fees, or returns. If you want a 40% margin on a $60 cost, the undiscounted price is $60 ÷ 0.60 = $100. A later 10% coupon is a different price, and the margin has to be recomputed on the money you actually collect. For the profit left after operating costs, use the gross margin calculator only for the COGS layer, then read the rest of the profit and loss.
Where people book it
The price you invoice is revenue. The cost attached to that sale is cost of goods sold if it is a direct cost of the item or job. The gap is gross profit. A markup schedule in a spreadsheet does not replace the general ledger. If the books are on the cash method, the cost might hit in a different month than the invoice.