You added 30% on top...
So why isn't it 30% profit?
The free Markup vs Margin Calculator for trade business owners who price jobs by adding a percentage on top, then wonder why the profit never matches.
- See the real gross profit your current markup is giving you
- Find the exact markup you need to hit your profit target
- Enter labour and materials separately, the way you actually quote
- Use it on your next quote, on your phone, tablet or computer
Free online tool.
Try it now
What's your markup really making you?
On a job that costs you $10,000, you charge $13,000 and keep $3,000.
To make a real 30%, you'd need a markup of 42.9%.
- Free online toolInstant access
- Built for trade businessesLabour and materials, not theory
- Your real numbersNot what you think you're making
- Use it on every quoteKnow your markup before you price
Where the profit goes
Markup and margin
are not the same thing.
Markup is what you add on top of your costs. Margin is the share of the sell price you actually keep. Mix them up and every quote goes out lower than you meant it to.
Most people think they're making more profit than they are. The table shows how far apart the two numbers get.
| If you add a markup of | Your real margin is |
|---|---|
| 20% | 16.7% |
| 25% | 20% |
| 30% | 23.1% |
| 40% | 28.6% |
| 50% | 33.3% |
| 100% | 50% |
A few percent looks small on one job. Across a full year of jobs, that's real money.
How it works
Two answers. Four steps.
The calculator answers two questions: what your current markup is really getting you, and what markup you need to hit your target.
- 1Enter your costsRaw labour cost and raw material cost for a job.
- 2Enter your current markupWhat you currently add on top of each cost.
- 3See your real gross profitThe margin you're actually making, not what you think.
- 4Set your targetEnter the gross profit you want and get the markup you need.
From business owners John has worked with
Real trade business owners.
Real results.
John's business knowledge is unmatched. I would recommend his advisory services to any business owner who is ready to take their business to the next level. The structure he helped us put in place changed everything about how we operate.
John has been my coach for five years. The impact has been invaluable. My business is more focused, efficient, and profitable. His clear, practical approach has helped me simplify complexity, make better decisions, and achieve real results. Highly recommend.
John transformed our business strategy and helped me focus on profit in every part of the business. Super impressed with his practical yet innovative approach. I achieved more working with John than I had in the years I spent trying to figure it out alone. Can't recommend him highly enough!
Meet John
Practical.
Experienced.
No bullshit.
Business help built for trade business owners.
John built and sold a multi million dollar electrical business and brings his practical experience to the problems trade business owners deal with every day: pricing, job profitability, cash flow, time and the systems needed to make the business run better.
This calculator shows you the real numbers so you can price properly.
This is for you if:
- You price jobs by adding a percentage on top of your costs
- You're winning work but the profit isn't showing up
- You've never been sure of the difference between markup and margin
- You want to know what to charge to hit your profit target
Ready to see
your real margin?
Put your next job through the calculator before you send the quote.
Want to go deeper? Watch John take you through the practical steps to build more profit into your trade business.