Markup Calculator
Calculate selling price from cost using markup or margin. See the difference between markup and margin with a comparison table.
Cost & Pricing
Markup vs. Margin Comparison
| Markup % | Margin % | Sell Price | Profit |
|---|---|---|---|
| 20% | 16.67% | $120 | $20 |
| 25% | 20% | $125 | $25 |
| 33.33% | 25% | $133.33 | $33.33 |
| 50% | 33.33% | $150 | $50 |
| 75% | 42.86% | $175 | $75 |
| 100% | 50% | $200 | $100 |
| 150% | 60% | $250 | $150 |
| 200% | 66.67% | $300 | $200 |
Results
Selling Price
$150.00
Markup is profit as % of cost. Margin is profit as % of selling price. Agencies often use 30–50% margin (43–100% markup) for services.
Markup vs. Margin Explained
What Is Markup?
Markup is the percentage you add to your cost to determine the selling price. It's calculated as (Selling Price - Cost) / Cost × 100. If you buy something for $100 and sell it for $150, your markup is 50%. Markup is useful when you want to add a percentage on top of what something costs you.
What Is Margin?
Margin (or profit margin) is the percentage of the selling price that is profit. It's calculated as (Selling Price - Cost) / Selling Price × 100. With a $100 cost and $150 selling price, your margin is 33.33%. Margin answers the question: what share of each dollar in revenue is profit?
Why the Difference Matters
A 50% markup does not equal a 50% margin. A 50% markup on $100 gives you $150 revenue and $50 profit—a 33.33% margin. Confusing the two can lead to underpricing. If you want a 50% margin, you need approximately a 100% markup. Agencies often target 30–50% margins, which means markups of 43–100%.
Common Agency Markups
- 20–30% markup (17–23% margin): Often used for high-volume, competitive services
- 50% markup (33% margin): Common baseline for agencies marking up freelancer or subcontractor costs
- 100% markup (50% margin): Standard for many creative and consulting services
- 150–200% markup (60–67% margin): Premium services, strategy, or specialized expertise
When to Use Each
Use markup when you're adding a percentage to a cost (e.g., marking up subcontractor rates). Use margin when you want to ensure a specific profit percentage of your revenue. Most agencies think in margins for target profitability but apply markups when pricing based on cost. Our calculator helps you switch between the two so you always price correctly.
Frequently Asked Questions
What's the difference between markup and margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. A 50% markup equals a 33.33% margin. They measure different things: markup tells you how much you add to cost; margin tells you what fraction of revenue is profit.
What markup should agencies use?
Many agencies use 50–100% markup on subcontractor and freelancer costs, which translates to 33–50% margins. For in-house work, agencies often price to achieve 30–50% margins. The right level depends on your overhead, target profit, and market position.
How do I convert margin to markup?
Use the formula: Markup = Margin / (1 - Margin). For example, a 40% margin requires Markup = 0.40 / 0.60 = 66.67%. Or use our calculator: enter your desired margin, and we'll show the equivalent markup and selling price.
When should I use markup vs margin?
Use markup when pricing based on cost (e.g., marking up a subcontractor's hourly rate). Use margin when you want to hit a target profit percentage on revenue. For example, if you want 40% of every dollar to be profit, work in margins. If you want to add 50% to a cost, work in markup.
Price Projects Confidently
AgencyPro helps you track costs, bill clients, and manage project profitability with clear margins and markups.