Invoice calculators · Updated September 2, 2026
Markup and Margin Calculator
Cost in, one slider — and the price, profit, margin and markup all at once. The two percentages everyone confuses, finally on one screen.
Profit per sale
Markup vs margin — the difference in one sale
Both start from the same profit; they divide it by different things. Markup = profit ÷ cost. Margin = profit ÷ price. Buy at $100, sell at $150: the $50 profit is a 50% markup but only a 33.3% margin. Quote a client "we work on 50%" and the two of you may be picturing different invoices — which is why the conversion table below is worth memorizing.
| Markup | Margin | Example: $100 cost sells at |
|---|---|---|
| 25% | 20% | $125 |
| 50% | 33.3% | $150 |
| 100% | 50% | $200 |
| 200% | 66.7% | $300 |
| 300% | 75% | $400 |
On the invoice itself the client only ever sees the price — the generator takes your rate or line price and handles quantities, tax and totals from there.
Markup & margin FAQ
Which one should I use to set prices?
Price with markup (it starts from your known cost), but judge the business on margin — margin is the share of every invoiced dollar you actually keep, and it is what accountants and lenders mean by profitability.
Why can't a margin be 100%?
A 100% margin would mean zero cost. Markup has no ceiling — a $10 item sold for $40 is a 300% markup — but its margin is still only 75%. The two scales meet at zero and drift apart from there.
What is a typical margin for services?
Service businesses commonly run 30–60% gross margins; trades with heavy materials sit lower, pure consulting higher. Whatever yours is, the habit that matters is knowing it per line — quote, invoice, and check the real margin after the extra hours land.
