ContractorHandbook

What Margin Is a 200 Percent Markup?

Margin, against price

66.7%

Tripling a $10,000 cost gives a $30,000 price, and $20,000 out of $30,000 is 66.7 percent.

Priceyour costgross profitmarkup is measured against thismargin is measured against this50% markup is 33.3% margin, and they are never the same number
Markup and margin describe the same dollar and divide it by different things, which is why fifty and thirty three can both be right about one job. The bar shows what each one is a share of.

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 setMarkup percent
  • That number200 % or $

Price to charge$30,000.00

Your cost$10,000.00
Price$30,000.00
Gross profit$20,000.00
Markup, against cost200%
Margin, against price66.7%this is the one your accountant means
If you want this marginMark up cost byOn $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

Markup compared

The gap between markup and margin widens as the number grows. Same cost, five markups.

MarkupPrice to chargeMargin, against price
10% markup$11,000.009.1%
20% markup$12,000.0016.7%
30% markup$13,000.0023.1%
40% markup$14,000.0028.6%
50% markup$15,000.0033.3%

What else matters here

Two hundred percent markup means tripling the cost, and it produces a 66.7 percent margin.

A four dollar fitting marked up two hundred percent is twelve dollars. The gross profit is eight dollars.

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 margin is a 200 percent markup?

66.7 percent. Tripling a $10,000 cost gives a $30,000 price and $20,000 of gross profit.

Different numbers?

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