Free Resource · Small Business Finance
Markup vs.
Margin Calculator
Markup and margin are not the same number — and confusing them is one of the most common ways contractors underprice their work. Enter your cost and target, and see exactly what you're actually making.
Calculate From
$
%
Sell Price
—
Gross Profit
—
Gross Margin
—
% of sell price
Markup
—
% of cost
The Math, Line by Line
Your cost—
Markup applied—
= Sell price—
Profit (sell − cost)—
Gross margin (profit ÷ sell)—
Markup (profit ÷ cost)—
Quick Reference: Markup → Margin Conversion
| Markup % | Gross Margin % | On $10,000 cost | Profit |
|---|---|---|---|
| 10% | 9.1% | $11,000 | $1,000 |
| 15% | 13.0% | $11,500 | $1,500 |
| 20% | 16.7% | $12,000 | $2,000 |
| 25% | 20.0% | $12,500 | $2,500 |
| 33% | 25.0% | $13,300 | $3,300 |
| 50% | 33.3% | $15,000 | $5,000 |
| 100% | 50.0% | $20,000 | $10,000 |
Rule of thumb: To hit a target margin of X%, your markup must be higher — specifically: Markup % = X% ÷ (1 − X%). For a 25% margin, that's 25 ÷ 0.75 = 33.3% markup.
Know Your Numbers — Including CMMC
Pricing your work right keeps the business profitable. But a DoD subcontract also requires CMMC compliance — and non-compliance can cost you the contract entirely. PCC makes Level 1 compliance straightforward for Pacific trade subs.
Plain-English compliance guide
Built for trade subs, not IT teams
Hawaii, Guam & CNMI coverage
Starting at $299/year
→ Take the free Sub Compliance Risk Check first
Related Tools
Pacific Cyber Compliance · pacificcybercompliance.com · Honolulu, Hawaii · Serving Hawaii, Guam & CNMI defense supply chains