01
Check an actual price
Use the same estimated cost and selling price for both percentages.
Gross profit$50.00price − cost
Gross margin33.3%profit ÷ price
Markup50.0%profit ÷ cost
Free pricing math tool
Margin and markup are not the same.
Enter one estimated cost and one selling price. See gross profit, gross margin, and markup side by side—then convert either target into a modeled price.
No account or email gate. Nothing is submitted or stored.
02
Convert a target
See the modeled selling price and equivalent percentage without treating margin and markup as interchangeable.
- Selling price
- $153.85
- Equivalent markup
- 53.8%
- Selling price
- $150.00
- Equivalent margin
- 33.3%
Both targets use the estimated cost above: $100.00. A target margin of 35.0% is not the same as a markup of 35.0%.
03 / The denominator
The same dollars produce two percentages.
(price − cost) ÷ priceMargin measures gross profit as a share of the selling price.
(price − cost) ÷ costMarkup measures gross profit relative to the estimated cost.
One $100 cost · two targets
The percentages describe different relationships. Label which one you mean before applying it to a quote.
04 / Before relying on it
A correct formula can still contain the wrong cost.
The calculation is only as useful as the estimate underneath it. A cleaning-job cost model may need loaded person-hours, payroll burden, supplies, travel, payment fees, and an intentional overhead allocation—not just the cleaner’s hourly wage.
- Use total person-hours across the crew.
- Keep taxes and pass-through charges separate where required.
- Compare estimates with completed-job records and recalibrate.
- Treat the result as a planning input, not a market-rate recommendation.
05 / Quick answers
Margin versus markup FAQ
What is the difference between gross margin and markup?+
Gross margin divides gross profit by selling price. Markup divides the same gross profit by cost. Because the denominators differ, the percentages are not interchangeable.
Does a 50% markup equal a 50% gross margin?+
No. If cost is $100, a 50% markup produces a $150 price and about 33.3% gross margin. A 50% gross-margin target on the same cost produces a $200 price.
Does TidyMargin receive these numbers?+
No. The calculator runs in your browser and has no submission form, account, or email field. The page view is counted only as a privacy-minimized aggregate event.
Educational planning tool only. It does not provide accounting, tax, legal, employment, or pricing advice and does not guarantee profit or an appropriate market price.