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.
To hit a 20% margin, you need a 25.0% markup.
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 calculates the correct markup from your margin target on every quote, so materials always contribute to profit rather than quietly eating into it.