What Markup Gives an 18 Percent Margin?
Markup, against cost
22%
To keep 18 percent of the price, add 22 percent to a $10,000 cost: $12,195.12.
How that number is worked out
These are the figures this page was built with and every line the calculator produces from them. Change anything above and all of it moves.
- Your cost for the job10000 $
- I want to setMargin percent
- That number18 % or $
Price to charge$12,195.12
| Your cost | $10,000.00 |
|---|---|
| Price | $12,195.12 |
| Gross profit | $2,195.12 |
| Markup, against cost | 22% |
| Margin, against price | 18%this is the one your accountant means |
| If you want this margin | Mark up cost by | On $10,000 cost, charge |
|---|---|---|
| 10% | 11.1% | $11,111.11 |
| 15% | 17.6% | $11,764.71 |
| 20% | 25% | $12,500.00 |
| 25% | 33.3% | $13,333.33 |
| 30% | 42.9% | $14,285.71 |
| 35% | 53.8% | $15,384.62 |
| 40% | 66.7% | $16,666.67 |
| 50% | 100% | $20,000.00 |
Margin compared
Going the other way, the required markup climbs much faster than the margin does.
| Margin | Price to charge | Markup, against cost |
|---|---|---|
| 10% margin | $11,111.11 | 11.1% |
| 20% margin | $12,500.00 | 25% |
| 30% margin | $14,285.71 | 42.9% |
| 40% margin | $16,666.67 | 66.7% |
| 50% margin | $20,000.00 | 100% |
What else matters here
Eighteen percent margin needs 22 percent on cost.
That number comes out of your own books, which is exactly what the overhead and profit calculator on this site is for.
What this calculator assumes
- Markup is measured against your cost. Margin is measured against the price. They are never the same number and confusing them is the most expensive arithmetic mistake in the trades.
- A 50 percent markup is a 33.3 percent margin. To actually keep 50 percent of the price you have to mark up by 100 percent.
Questions people ask
What markup gives an 18 percent margin?
22 percent. On a $10,000 cost that is a price of $12,195.12 and $2,195.12 of gross profit.
The markup vs margin calculator takes any dimensions you like and hands back the same list.
Other common sizes
25 more sizes are answered on the markup vs margin calculator page