What Markup Gives a 28 Percent Margin?
Markup, against cost
38.9%
To keep 28 percent of the price, add 38.9 percent to a $10,000 cost: $13,888.89.
How that number is worked out
These are the figures this page was built with and every line the calculator produces from them. Change anything above and all of it moves.
- Your cost for the job10000 $
- I want to setMargin percent
- That number28 % or $
Price to charge$13,888.89
| Your cost | $10,000.00 |
|---|---|
| Price | $13,888.89 |
| Gross profit | $3,888.89 |
| Markup, against cost | 38.9% |
| Margin, against price | 28%this is the one your accountant means |
| If you want this margin | Mark up cost by | On $10,000 cost, charge |
|---|---|---|
| 10% | 11.1% | $11,111.11 |
| 15% | 17.6% | $11,764.71 |
| 20% | 25% | $12,500.00 |
| 25% | 33.3% | $13,333.33 |
| 30% | 42.9% | $14,285.71 |
| 35% | 53.8% | $15,384.62 |
| 40% | 66.7% | $16,666.67 |
| 50% | 100% | $20,000.00 |
Margin compared
Going the other way, the required markup climbs much faster than the margin does.
| Margin | Price to charge | Markup, against cost |
|---|---|---|
| 10% margin | $11,111.11 | 11.1% |
| 20% margin | $12,500.00 | 25% |
| 30% margin | $14,285.71 | 42.9% |
| 40% margin | $16,666.67 | 66.7% |
| 50% margin | $20,000.00 | 100% |
What else matters here
Twenty eight percent margin needs 38.9 percent on cost, and one blended percentage across a whole job is the easy way to get there rather than the right way.
Labor and materials do not deserve the same percentage. Labor carries the risk: the hours are an estimate, the productivity is an estimate, the weather is an estimate, and if any of them is wrong the loss is yours. Material is mostly a known number with an invoice attached, and it is the part the customer can price at a store, which makes a large percentage on it the easiest thing in the world for them to object to.
So split it. Take $6,000 of labor at a 35 percent margin, which prices at $9,230.77, and $4,000 of material at a 15 percent margin, which prices at $4,705.88. The job totals $13,936.65, a blended margin of 28.2 percent, within a rounding of the single percentage above. Same answer, better defense, and you now know which half of the job is carrying the business.
What this calculator assumes
- Markup is measured against your cost. Margin is measured against the price. They are never the same number and confusing them is the most expensive arithmetic mistake in the trades.
- A 50 percent markup is a 33.3 percent margin. To actually keep 50 percent of the price you have to mark up by 100 percent.
Questions people ask
What markup gives a 28 percent margin?
38.9 percent. On a $10,000 cost that is a price of $13,888.89 and $3,888.89 of gross profit.
Should labor and materials carry the same margin?
No. Labor carries the estimating and productivity risk and deserves more, while material is a known cost the customer can price at a store and attracts objections at a high percentage.
How do I split the margin by line?
Price each side at its own percentage, then check the blend. $6,000 of labor at 35 percent and $4,000 of material at 15 percent totals $13,936.65, which is a blended 28.2 percent.
The markup vs margin calculator takes any dimensions you like and hands back the same list.