Convert between markup and margin so you stop under-charging: a 50% markup is only a 33% margin.
Free to use with no account. When you want to send the result by text, take a card payment, or keep a record of every job, the same numbers carry straight into Glo Invoice.
The formula. Markup = (price − cost) ÷ cost. Margin = (price − cost) ÷ price. They describe the same dollars from different sides, which is why they never match.
Worked example. A $200 part sold at $300 is a 50% markup but only a 33% gross margin. To hit a 40% margin on that part you have to charge $333, not $280.
How to use it on a real job. Enter your true landed cost — the part plus shipping, plus the time spent sourcing it. Mark that up, then price labor separately at your labor rate.
Common mistakes. Quoting a margin number as if it were markup (the single most expensive pricing error in the trades); marking up the part but forgetting pickup time; using one markup on a $12 fitting and a $1,200 unit — small parts usually carry a higher percentage.
Frequently asked questions
Is a 50% markup the same as a 50% margin?
No. A 50% markup is a 33.3% margin. Margin can never reach 100%; markup can go far above it.
What markup do trades normally use on parts?
Common ranges run roughly 25–50% on parts, higher on small consumables and lower on expensive equipment. Your own cost of sourcing, warranty exposure, and local market set the number.
Should labor be marked up too?
Labor is priced from a billable rate rather than marked up. Use the labor rate calculator for that, then add parts with markup.
