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Markup and Profit Margin Calculator for Decorators

Add a markup to your job costs to find a selling price, or work backwards from a desired profit margin. Understand the difference between markup and margin at a glance.

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Markup Results

Total cost
£400.00
Markup amount
£160.00
Selling price
£560.00
Actual profit margin
28.6%

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Markup and margin are not the same thing. A 50% markup on £100 gives a selling price of £150 and a profit margin of 33%, not 50%. Always check your margin before quoting to make sure your prices deliver the profit you need.

What this calculator does

The markup and profit margin calculator has two modes. Mode 1 adds a markup to your costs to find a selling price and shows the actual profit margin. Mode 2 works backwards from a desired profit margin to find the selling price you need to charge.

How to use it

In Mode 1, enter your labour, material and other costs, then your markup percentage. The calculator shows the total cost, markup amount, selling price and actual profit margin. In Mode 2, enter your total job cost and desired profit margin percentage to find the required selling price, gross profit and equivalent markup.

How the calculation works

Markup is calculated as (selling price − cost) ÷ cost, expressed as a percentage. Margin is calculated as (selling price − cost) ÷ selling price. To work backwards from a desired margin, the selling price is calculated as total cost ÷ (1 − desired margin as a decimal).

Markup and margin are not the same

A 50% markup on £100 gives a selling price of £150 and a profit margin of 33%, not 50%. Markup is based on your cost; margin is based on your selling price. Confusing the two is a common reason decorators underprice their work — use this calculator to check before you quote.

Frequently Asked Questions

What is the difference between markup and margin?
Markup is the percentage added to your cost to reach a selling price. Margin is the percentage of the selling price that is profit. A 50% markup gives a 33% margin, not a 50% margin.
What profit margin should I aim for?
Many decorators aim for a 20–30% net profit margin. Use the job price calculator to check that your quoted prices deliver the margin you need.
How do I set my selling price?
Start with your total costs, decide on the margin you need, then use Mode 2 to find the selling price. Check the result against what customers in your area are willing to pay.
Why does my margin look lower than my markup?
Because margin is a percentage of the selling price (which is higher than your cost), the margin figure is always lower than the markup figure for the same job. This is expected, not an error.

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