On $1,000 of cost, a 30% markup creates a $1,300 price and a 23.1% gross margin.
A true 30% gross margin requires a $1,428.57 price, the equivalent of a 42.9% markup.
Margin price = Cost ÷ (1 − margin)
Markup price = Cost × (1 + markup)FREE MARKUP VS MARGIN CALCULATOR
The same percentage can price two different jobs.
Enter your cost, choose margin or markup, and see the selling price, gross profit, and equivalent percentage instantly.
✓ Two-way conversion✓ No signup✓ Your numbers stay private
BUILD THE SELLING PRICEChoose whether the percentage is based on cost or selling price.
Margin uses the selling price. Switching methods preserves the current price by converting to the equivalent percentage.
ONE COST. TWO DIFFERENT 30%s.
Markup adds to cost. Margin protects part of price.
READ THE RESULT CORRECTLY
Four numbers. Four different jobs.
The calculator keeps the denominator visible so a familiar percentage does not hide the wrong target.
Cost
The labor, materials, and other expenses included in the calculation.
Selling price
The customer-facing price produced by the selected pricing method.
Gross profit
Selling price minus the job cost entered, not final business profit.
Percentage
Margin divides profit by price. Markup divides the same profit by cost.
PRICE CHOSEN?
Put it into a clear customer quote.
Carry the selling price into Northmethod Quotes, add the real scope and terms, and create a polished PDF.
COMMON QUESTIONS
Know which percentage you mean.
What is the difference between markup and margin?＋
Markup compares gross profit with job cost. Gross margin compares gross profit with the selling price. Because they use different bases, the same percentage produces different prices.
What margin does a 30% markup produce?＋
A 30% markup on $1,000 of cost produces a $1,300 selling price and $300 of gross profit. That profit is 23.1% of the selling price, so the gross margin is 23.1%, not 30%.
How do I convert margin to markup?＋
Divide the margin percentage by one minus that margin. For example, 30% margin divided by 70% equals a 42.9% markup on cost.
Is gross margin the same as net profit?＋
No. Gross margin only accounts for the costs included in this calculation. General overhead, taxes, debt, owner compensation, and other expenses may still need to be paid.
What should I enter as job cost?＋
Use the costs required to deliver the work, such as labor cost, materials, subcontractors, rentals, permits, disposal, travel, and other direct expenses. Be consistent with how your business allocates overhead.
Does Northmethod store my pricing numbers?＋
No. The calculation runs in your browser and the figures you enter are not sent to Northmethod.