Free markup calculator
Markup vs margin calculator.
A 25 % markup is not a 25 % margin. Enter your cost and either the markup you add or the margin you want to keep, and see the price to quote.
Rates and rules checked November 13, 2026
Markup and margin are not the same number
Markup is profit as a percent of your cost. Margin is profit as a percent of the price. On a $1,000 job with a 25 % markup you quote $1,250 and keep $250, which is 20 % of the price. If your accountant says you need a 25 % margin, you need a 33.3 % markup.
Mixing the two is one of the most common ways contractors underprice: the job looks profitable on the quote and comes out short at year end.
What goes into cost
Use the full cost of the job: materials with delivery and waste, labour at what it really costs you (wages plus CPP, EI, WSIB or CNESST and vacation pay), equipment rentals, permits, disposal. Overhead such as your truck, insurance and office can go into the cost or be covered by the markup; just don't count it twice or forget it.
This calculator does arithmetic on the numbers you enter. It is not tax or legal advice; check your situation with the CRA, your provincial tax office or your accountant.
Markup to margin, at a glance
| Markup on cost | Margin on price | Price for $1,000 of cost |
|---|---|---|
| 10 % | 9.1 % | $1,100 |
| 15 % | 13 % | $1,150 |
| 20 % | 16.7 % | $1,200 |
| 25 % | 20 % | $1,250 |
| 30 % | 23.1 % | $1,300 |
| 35 % | 25.9 % | $1,350 |
| 40 % | 28.6 % | $1,400 |
| 50 % | 33.3 % | $1,500 |
| 75 % | 42.9 % | $1,750 |
| 100 % | 50 % | $2,000 |
Questions contractors ask
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). A 50 % markup is 0.5 ÷ 1.5 = 33.3 % margin.
How do I convert margin to markup?
Markup = margin ÷ (1 − margin). A 20 % margin needs 0.2 ÷ 0.8 = 25 % markup.
Do I add the markup before or after tax?
Before. Mark up your cost to get the price, then add GST/HST, PST or QST on that price.
Stop doing this math by hand.
quoteai writes the whole quote from a few words: line items, your markup, the right taxes for the customer's province, deposits and progress billing. Then the contract, the invoice and the payment use the same numbers.
7 days free, no credit card.