Pricing

Pricing Markup Calculator

Add a markup to your materials, labour, and other direct job costs to estimate a selling price, profit, and profit margin.

Currency

Material costs

Include the materials and products purchased specifically for the job.

Labour costs

Include your own labour cost, employee wages, and subcontractor costs.

Other direct job costs

For example: travel, equipment hire, disposal fees, parking, permits, or delivery charges.

Desired markup (%)

Markup is the percentage added to total costs, not the percentage of the final selling price retained as profit.

Estimated Results

Suggested selling price

€1,560

Total job costs

€1,200

Estimated profit

€360

Markup applied

30%

Profit margin

23.1%

What this means

Total job costs

€1,200

Suggested charge

€1,560

Profit margin

23.1%

Applying a markup of 30% to total direct costs of €1,200 produces a suggested selling price of €1,560.

This would leave approximately €360 before tax and any indirect business overheads that were not included in the costs above.

A markup of 30% produces an estimated profit margin of 23.1%. Markup and profit margin are related, but they are not the same percentage.

This produces a moderate markup and a healthier margin, provided all relevant job costs have been included.

This is a simplified pricing estimate. Make sure the costs entered reflect the direct expenses required to complete the job. Wider overheads such as insurance, vehicles, tools, software, administration, and marketing may still need to be recovered through your pricing.

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Understanding Your Result

How Pricing Markup Works

How markup is calculated

Selling Price = Total Costs × (1 + Markup %)

Markup is added to the underlying cost of the job. For example, a 30% markup on €1,000 of costs adds €300 and produces a selling price of €1,300.

Markup is not profit margin

Markup measures profit against the job costs, while profit margin measures profit against the final selling price. A 30% markup therefore produces a lower profit margin than 30%.

Pricing Markup Calculator FAQs

How do you calculate markup?+

Multiply the total job costs by the markup percentage to calculate the amount of profit added, then add that amount to the original costs to get the selling price.

What is the difference between markup and margin?+

Markup measures profit as a percentage of costs. Profit margin measures profit as a percentage of the final selling price. The two percentages are related but are not interchangeable.

What costs should be included before adding markup?+

Include the direct costs required to complete the job, such as materials, labour, subcontractors, equipment hire, disposal fees, travel, permits, and other job-specific expenses.

Does a higher markup always mean more profit?+

A higher markup increases the profit built into the quoted price if the job is sold at that price. However, pricing also needs to remain competitive and reflect customer demand, job complexity, business overheads, and the value of the work provided.

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