Markup vs Margin
Calculate sell price using either markup on cost or gross margin on sell price.
Result
- Sell price ex GST
- $12,000.00
- Gross profit
- $2,000.00
- Actual margin
- 16.67%
FREE BUILDER MARGIN CALCULATOR
Markup vs Margin Calculator
Compare markup and gross margin so construction pricing is expressed consistently. Enter cost and the required percentage to see how the selling price changes.
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When this tool is useful
Practical preliminary checks
- Checking builder or subcontractor pricing arithmetic
- Converting between markup and gross margin concepts
- Reviewing cost-plus and variation calculations
- Avoiding the common mistake of treating markup and margin as the same percentage
How it works
Markup is calculated as profit divided by cost. Margin is calculated as profit divided by selling price. Because they use different bases, the same percentage does not produce the same selling price.
Important estimating note
This calculator is an arithmetic aid only. Contract terms, overhead recovery, GST, tax treatment and project-specific commercial requirements should be checked separately.
Frequently asked questions
What is the difference between markup and margin?
Markup measures profit against cost, while margin measures profit against selling price. They are related but are not the same percentage.
Is a 20% markup the same as a 20% margin?
No. A 20% markup produces a lower gross margin percentage because margin is measured against the final selling price.
Does this calculator include GST?
Use the result as a pricing calculation and check GST separately unless the tool specifically shows a GST-inclusive figure.
Related EBC guidance
Understand the project behind the calculation
Need help applying the numbers to a real building project?
EBC works on renovations, extensions and new builds across Melbourne's Eastern Suburbs.