Definition
What it means
Markup is the percentage you add on top of your cost to get your sell price. Margin is the percentage of your sell price that is profit. These get confused all the time, and the confusion costs tradespeople real money. A 50 percent markup is only a 33 percent margin. A 100 percent markup is a 50 percent margin.
The maths
If your material costs $100 and you mark it up 50 percent, you sell for $150. Your profit is $50. Markup = 50 / 100 = 50 percent. Margin = 50 / 150 = 33 percent. If you want a 50 percent margin instead, you need to mark up 100 percent (sell for $200).
Why this matters
Most tradespeople aim for a margin (the actual share of revenue they keep) but think in markup (what they add on top). If you target 'add 30 percent' on every job, your margin is only 23 percent and you are leaving real money on the table when overheads, vehicle costs, and tax come out.
How QuoteGenio handles markup
Use the free markup vs margin calculator to convert between the two. Then quote with confidence, knowing the margin you are actually keeping after costs.
Related terms
Other glossary entries you might want next
Closely related terms in the trades-finance vocabulary, with the same plain-English treatment.
Scope of Work
A precise list of what the quote covers and what it does not. Protects you from scope creep and protects the customer from surprise charges.
Day Rate
A fixed price for one day of your labour. Used when the scope is unclear, when work is exploratory, or for time-and-materials jobs.
Put it to work
Templates that use this concept
Free quote and invoice templates where this term naturally appears.
Testimonials
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Interior Designer · Birmingham
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Landscaper · Melbourne
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Installer · Paris
Read more
Articles that go deeper on this topic
Long-form posts from the QuoteGenio blog that put this concept in real-world context.
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