Markup & Margin Calculator
Calculate your selling price, profit margin, and markup percentage. See the difference between markup and margin — they're not the same thing.
Calculate selling price from cost + markup
Results
£125.00
Selling price
Typical UK trade markups
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Try Gaffer freeMarkup vs margin: what's the difference?
This is the most common pricing confusion in the trades — and getting it wrong means you're either leaving money on the table or pricing yourself out of work.
Markup
The percentage added to your cost to get the selling price.
Formula: (Selling Price − Cost) ÷ Cost × 100
Margin
The percentage of the selling price that is profit.
Formula: (Selling Price − Cost) ÷ Selling Price × 100
The trap: A 25% markup only gives you a 20% margin. A 50% markup gives you a 33% margin. If your accountant says you need 25% margins and you're applying 25% markup, you're making less than you think.
Common markup/margin conversions
| Markup | = Margin | Example (£100 cost) |
|---|---|---|
| 10% | 9.1% | Sell for £110, profit £10 |
| 15% | 13.0% | Sell for £115, profit £15 |
| 20% | 16.7% | Sell for £120, profit £20 |
| 25% | 20.0% | Sell for £125, profit £25 |
| 30% | 23.1% | Sell for £130, profit £30 |
| 40% | 28.6% | Sell for £140, profit £40 |
| 50% | 33.3% | Sell for £150, profit £50 |
| 100% | 50.0% | Sell for £200, profit £100 |
Frequently asked questions
What is the difference between markup and margin?▾
Markup is the percentage added to cost to get selling price. Margin is the percentage of selling price that is profit. A 25% markup gives a 20% margin — they're not the same.
What markup should tradespeople charge on materials?▾
Most UK tradespeople mark up materials by 15–30%. Plumbers typically add 20–30%, electricians 15–25%, builders 10–20%. It depends on your trade, buying power, and whether customers can easily check prices.
Should I show materials cost separately on quotes?▾
It depends on your business model. Transparency builds trust, but some customers will compare material prices online. Many tradespeople list materials as a single line without per-item costs.
What profit margin should a trade business aim for?▾
A healthy net profit margin is 15–25% for UK trade businesses. Sole traders often see 20–30%, larger firms 10–20%. Below 10% means you're probably undercharging.