Markup vs margin calculator
See what your materials markup actually earns - and what markup you need to hit the margin you want.
A 20% markup is only a 16.7% margin.
Work backwards from a margin target
To hit a 20% margin, you need a 25.0% markup.
Why markup and margin are not the same thing
Markup is applied to your cost. Margin is measured against the selling price. Because those are two different numbers, the same dollar amount of profit represents a smaller percentage when you calculate it against price than against cost. A 20% markup on a $500 job is $100 profit - but that $100 is only 16.7% of the $600 you charge.
This matters because trade businesses often set a margin target - say, 20% - and then quote materials with a 20% markup, thinking they've hit it. They haven't. Using the wrong formula quietly erodes profit on every job that includes materials.
figrd works the markup out from your margin target as you build the quote, so materials go on the line at the number you actually meant.