Markup Calculator
Cost in, price out. See markup and margin side by side, because they are not the same number and mixing them up costs real money.
The short answer
A $100 part marked up 40 percent sells for $140, and that $40 of profit is a 28.6 percent margin, not 40, because markup is measured against cost while margin is measured against the selling price. Margin is therefore always the smaller of the two numbers for the same sale. Across US trades, parts and materials carry roughly 20 to 50 percent markup over cost in 2026: plumbing and auto repair sit around 30 to 50 percent, electrical 20 to 50, handyman work and painting 20 to 40, and landscaping materials 25 to 50. HVAC runs widest, from about 30 percent on large equipment to several times cost on small parts. The percentage should shrink as the item gets pricier, since a $4 fitting can carry 50 percent or more while a $2,000 condenser at 20 to 30 percent still earns real money. Markup is not padding. It pays for sourcing, supply-house trips, returns, stock carried on the truck and the warranty you stand behind on what you install.
Markup vs. margin, in one breath
Markup is profit as a percentage of cost. Margin is profit as a percentage of price. A 40% markup on a $100 part gives a $140 price, and that $40 profit is a 28.6% margin. The trap: aiming for a "50% margin" but applying a 50% markup gets you a 33% margin, a third less profit than intended. When someone says a percentage, ask which base they mean.
Quick reference
- Markup 20% = margin 16.7%
- Markup 30% = margin 23.1%
- Markup 40% = margin 28.6%
- Markup 50% = margin 33.3%
- Markup 100% = margin 50%
- To hit a target margin: markup % = margin ÷ (100 − margin) × 100. A 30% margin needs a 42.9% markup.
Typical trade markups on parts and materials run 20–50% over cost; the reasoning per trade is in the 2026 Trade Pricing Report.
The formula, step by step
- Selling price = cost x (1 + markup % / 100).
- Profit = selling price - cost.
- Margin = profit / selling price x 100. Markup is profit as a share of cost; margin is profit as a share of the price, so a 40% markup is a 28.6% margin.
Cost and markup are taken as entered; a zero price gives a 0% margin.
Worked example with the starting numbers
Your cost ($): 100; Markup (%): 40. Result: selling price $140.00, profit $40.00, margin 28.6%.
Typical 2026 US materials markup by trade
| Trade | Typical markup over cost | Equivalent margin |
|---|---|---|
| Plumbing | 30–50% | 23–33% |
| Electrical | 20–50% | 17–33% |
| HVAC (sliding by part price) | 30% on equipment, up to 3x cost on small parts | 23–67% |
| Auto repair (over wholesale) | 30–50% | 23–33% |
| Handyman | 20–40% | 17–29% |
| Painting (paint and sundries) | 20–40% | 17–29% |
| Landscaping (plants, mulch, soil) | 25–50% | 20–33% |
Typical ranges as of September 2026 · US national. Editorial reference figures for typical US trade markups, checked against Numulo's 2026 trade pricing report where it covers them. Sources: Numulo 2026 trade pricing report.
Put the number on an estimate
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Frequently asked questions
What is the difference between markup and margin?
Markup compares profit to what the item cost you; margin compares the same profit to what the customer paid. On any single sale the dollar profit is identical, but the percentages differ because the base differs. Pricing with a markup figure when your accountant or supplier is talking about margin is how a business ends up earning noticeably less than it planned.
What markup should I put on materials?
Start from your trade's band in the table, then adjust for part price and effort. Small, cheap items that need a special trip or come from stock on the truck justify the top of the band or more; expensive equipment ordered once for one job can sit at the bottom. Whatever you choose, apply it consistently so two similar jobs come out priced alike.
Should I show my markup on the invoice?
No. Show the price of each part, or a single materials line, rather than your cost with a percentage added on top. Customers read a listed markup as a surcharge and ask you to remove it, while the same total shown as a part price rarely draws a comment. Keep cost and markup in your own records for job costing.
Is it fair to mark up parts customers could buy online?
Yes, as long as you stand behind what you supply. The markup covers finding the right part, the trip to get it, the return when it is wrong, and the callback if it fails. When a customer insists on supplying their own part, install it at your labor rate and note on the invoice that the part itself carries no warranty from you.
Should I mark up a subcontractor's invoice?
Yes. When you hire a subcontractor and bill the customer for their work, add a markup for scheduling them, supervising the work, and standing behind it if something goes wrong. Show it as part of the line price for that scope of work rather than as a separate fee, the same way you present materials.
Related
- Labor Rate Calculator: build your hourly rate from income, overhead, and billable hours
- 2026 Trade Pricing Report
- All free invoice templates