What Markup Gives a 5 Percent Margin?
Markup, against cost
5.3%
To keep 5 percent of the price, add 5.3 percent to a $10,000 cost: $10,526.32.
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 number5 % or $
Price to charge$10,526.32
| Your cost | $10,000.00 |
|---|---|
| Price | $10,526.32 |
| Gross profit | $526.32 |
| Markup, against cost | 5.3% |
| Margin, against price | 5%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
Five percent margin needs 5.3 percent added to cost.
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 a 5 percent margin?
5.3 percent. On a $10,000 cost that is a price of $10,526.32 and $526.32 of gross profit.
How much revenue does a $2,000 loss cost me at a 5 percent margin?
$40,000, which is nearly four more jobs this size, just to get back to where you started.
Different numbers?
The markup vs margin calculator takes any dimensions you like and hands back the same list.
Other common sizes
5% markup4.8%10% markup9.1%12% markup10.7%15% markup13%18% markup15.3%20% markup16.7%22% markup18%25% markup20%30% markup23.1%33% markup24.8%35% markup25.9%40% markup28.6%45% markup31%50% markup33.3%55% markup35.5%60% markup37.5%65% markup39.4%70% markup41.2%75% markup42.9%80% markup44.4%100% markup50%200% markup66.7%8% margin8.7%10% margin11.1%12% margin13.6%15% margin17.6%18% margin22%20% margin25%22% margin28.2%25% margin33.3%28% margin38.9%30% margin42.9%33% margin49.3%35% margin53.8%40% margin66.7%45% margin81.8%50% margin100%55% margin122.2%60% margin150%65% margin185.7%70% margin233.3%75% margin300%80% margin400%