Free tool for tradies
Profit margin vs markup converter for tradies
Free margin and markup converter with GST toggle and a side-by-side matrix. Stop leaking profit by confusing 20% markup with 20% margin.
Guideline only. Not financial, tax, or legal advice.
Converter
A 20% markup on $1,000 is $1,200, but that is only a 16.7% margin. Mixing them up leaks profit on every job. Xero AU Margin vs Markup guide
What to quote the customer
- Sell price (inc GST)
- $1,375.00
- Sell price ex GST
- $1,250.00
- GST (10%)
- $125.00
- Your profit (ex GST)
- $250.00
- True margin
- 20.0%
- True markup
- 25.0%
If you treat margin as markup
- Wrong sell price
- $1,200.00
- You undercharge by
- $50.00
Margin ↔ markup matrix
Quick reference: the markup you need on cost to hit a target margin on sell price.
| Margin | Markup needed | On your cost |
|---|---|---|
| 10% | 11.1% | $1,111 |
| 15% | 17.6% | $1,176 |
| 20% | 25.0% | $1,250 |
| 25% | 33.3% | $1,333 |
| 30% | 42.9% | $1,429 |
| 35% | 53.8% | $1,538 |
| 40% | 66.7% | $1,667 |
| 50% | 100.0% | $2,000 |
Example: 20% margin needs 25% markup. 30% margin needs about 42.9% markup.
Common questions
What is the difference between margin and markup?
Markup is profit as a percent of cost. Margin is profit as a percent of sell price. A 20% markup on $1,000 is $1,200, which is only a 16.7% margin. See the Xero AU guide linked below.
Should GST be inside my margin target?
No. Set margin on the ex-GST sell price, then add 10% GST for the customer total. Mixing GST into margin math is another common way to underquote.
Guides and further reading
Use these sources to check current benchmarks and formulas. Our tools are guidelines only - not quotes or professional advice. Swiftscope does not endorse third-party advice beyond linking the reference.
- Xero AU Margin vs Markup guide
Clear definitions: margin is profit on revenue; markup is profit on cost.
- Xero margin calculator
Shows why a 20% margin needs a 25% markup.
Stop doing driveway math at Bunnings. Swiftscope applies your exact pre-configured profit margins to materials instantly.