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Markup to Margin Calculator

Converts markup percentage to margin percentage and vice versa. Includes side-by-side truth table and example calculations.

Results

Markup
--
Margin
--
Selling Price
--
Profit
--

Quick Reference Table

Markup
Margin
$35K Profit
10%
9.1%
$3,182
15%
13.0%
$4,565
20%
16.7%
$5,833
25%
20.0%
$7,000
30%
23.1%
$8,077
35%
25.9%
$9,074
40%
28.6%
$10,000
50%
33.3%
$11,667

The most common bidding mistake in construction is confusing markup and margin. A 20% markup does NOT give you a 20% margin — it gives you 16.7%.

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How to Use This Calculator

1. Choose your conversion direction. Select whether you are converting from markup to margin or from margin to markup.

2. Enter the percentage. Type in the markup or margin percentage you want to convert.

3. Optionally enter project cost. Adding a dollar amount shows the actual selling price and profit in dollars.

How the Formula Works

Markup to Margin: Margin = Markup / (100 + Markup) x 100

Margin to Markup: Markup = Margin / (100 - Margin) x 100

Selling Price = Cost x (1 + Markup / 100)

Profit = Selling Price - Cost

Frequently Asked Questions

How do I convert markup to margin?
Divide the markup percentage by (100 + markup), then multiply by 100. Example: 25% markup = (25 / 125) x 100 = 20% margin.
How do I convert margin to markup?
Divide the margin percentage by (100 - margin), then multiply by 100. Example: 20% margin = (20 / 80) x 100 = 25% markup.
What markup should a general contractor use?
Most GCs use 25-35% markup (20-26% margin). Remodeling contractors often use 35-50% markup (26-33% margin) due to higher overhead.

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