How to use the markup / margin calculator
This calculator helps you calculate a selling price using either a target margin or a markup on cost. It is intended for quantity takeoffs, early budgets and checks against a measured schedule. Start with the dimensions or quantities for one clearly defined item of work. Enter values in the units shown beside each field; millimetres and metres are not interchangeable.
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. Figures are before tax and assume your cost input includes everything you intend to recover.
Worked example
A cost of 1,000 with a 20% margin needs a selling price of 1,250. A 20% markup gives a selling price of 1,200 and a 16.67% margin.
Before you order
Compare the result with your drawings and supplier information. Keep the original net quantity separate from allowances, and round purchasing quantities only at the ordering stage. Check whether delivery, labour and related materials belong elsewhere in your estimate. If the drawing or specification changes, update the inputs and record the revised basis instead of reusing an earlier total.
For the concepts behind this calculation, read Markup vs Margin, Overheads and Profit, Rate Build-Up.