Updated October 2026 · 5 minute read
You know the margin you want. This page gives you the markup that gets you there, for every margin from 10% to 50%, with the formula, a worked example and the Excel formula to do it in a spreadsheet.
- 30% margin = 42.9% markup. Multiply cost by 1.4286, or divide cost by 0.70.
- 25% margin = 33.3% markup. 35% margin = 53.8% markup.
- 40% margin = 66.7% markup. 50% margin = 100% markup.
- Formula: markup = margin ÷ (1 − margin). Price = cost ÷ (1 − margin).
Margin to markup chart (10% to 50%)
Find the margin you want in the first column. The second column is the markup to add to your cost; the third is the number to multiply your cost by. 55% and 60% are added at the end.
| Target margin | Markup needed | Multiply cost by | Price on $100 cost |
|---|---|---|---|
| 10% | 11.1% | 1.1111 | $111.11 |
| 11% | 12.4% | 1.1236 | $112.36 |
| 12% | 13.6% | 1.1364 | $113.64 |
| 13% | 14.9% | 1.1494 | $114.94 |
| 14% | 16.3% | 1.1628 | $116.28 |
| 15% | 17.6% | 1.1765 | $117.65 |
| 16% | 19.0% | 1.1905 | $119.05 |
| 17% | 20.5% | 1.2048 | $120.48 |
| 18% | 22.0% | 1.2195 | $121.95 |
| 19% | 23.5% | 1.2346 | $123.46 |
| 20% | 25.0% | 1.2500 | $125.00 |
| 21% | 26.6% | 1.2658 | $126.58 |
| 22% | 28.2% | 1.2821 | $128.21 |
| 23% | 29.9% | 1.2987 | $129.87 |
| 24% | 31.6% | 1.3158 | $131.58 |
| 25% | 33.3% | 1.3333 | $133.33 |
| 26% | 35.1% | 1.3514 | $135.14 |
| 27% | 37.0% | 1.3699 | $136.99 |
| 28% | 38.9% | 1.3889 | $138.89 |
| 29% | 40.8% | 1.4085 | $140.85 |
| 30% | 42.9% | 1.4286 | $142.86 |
| 31% | 44.9% | 1.4493 | $144.93 |
| 32% | 47.1% | 1.4706 | $147.06 |
| 33% | 49.3% | 1.4925 | $149.25 |
| 34% | 51.5% | 1.5152 | $151.52 |
| 35% | 53.8% | 1.5385 | $153.85 |
| 36% | 56.3% | 1.5625 | $156.25 |
| 37% | 58.7% | 1.5873 | $158.73 |
| 38% | 61.3% | 1.6129 | $161.29 |
| 39% | 63.9% | 1.6393 | $163.93 |
| 40% | 66.7% | 1.6667 | $166.67 |
| 41% | 69.5% | 1.6949 | $169.49 |
| 42% | 72.4% | 1.7241 | $172.41 |
| 43% | 75.4% | 1.7544 | $175.44 |
| 44% | 78.6% | 1.7857 | $178.57 |
| 45% | 81.8% | 1.8182 | $181.82 |
| 46% | 85.2% | 1.8519 | $185.19 |
| 47% | 88.7% | 1.8868 | $188.68 |
| 48% | 92.3% | 1.9231 | $192.31 |
| 49% | 96.1% | 1.9608 | $196.08 |
| 50% | 100.0% | 2.0000 | $200.00 |
| 55% | 122.2% | 2.2222 | $222.22 |
| 60% | 150.0% | 2.5000 | $250.00 |
Every figure is calculated with markup = margin ÷ (1 − margin) and price = cost ÷ (1 − margin), rounded to one decimal place for markup and to the cent for price.
The formula
Price = cost ÷ (1 − margin)
Use margins as decimals: 30% is 0.30.
Going the other way, from a markup you already use to the margin it gives: margin = markup ÷ (1 + markup). A 50% markup gives 0.50 ÷ 1.50 = 33.3% margin.
Worked example: a 30% margin
| Step | Example |
|---|---|
| Job cost (labor, materials, overhead share) | $2,000 |
| Target margin | 30% |
| Price = $2,000 ÷ (1 − 0.30) | $2,857.14 |
| Profit = price − cost | $857.14 |
| Check margin: $857.14 ÷ $2,857.14 | 30.0% |
| Markup: $857.14 ÷ $2,000 | 42.9% |
The example job cost is an illustration; the percentages work the same for any cost.
Excel and Google Sheets formula
Put the cost in column A and the target margin (as a percentage) in column B:
| Cell | Formula | What it gives |
|---|---|---|
| C2 | =A2/(1-B2) | Selling price |
| D2 | =B2/(1-B2) | Markup % (format as %) |
| E2 | =C2-A2 | Profit in dollars |
| F2 | =E2/C2 | Margin check, should equal B2 |
Both formulas work the same way in Excel and Google Sheets. If B2 is 100% or more, the price formula divides by zero or gives a negative number, because no price can give a 100% margin.
The mistake that costs you 7 points
The most common pricing slip is adding your target margin as a markup. If you want 30% and add 30% to cost, you get a 23.1% margin, about 7 points short. On $100,000 of jobs priced this way, the difference between a 30% and a 23.1% margin is about $6,900 of profit.
- 30% markup → 23.1% margin
- 40% markup → 28.6% margin
- 50% markup → 33.3% margin
For the full markup-to-margin chart and how overhead fits in, see our contractor markup vs margin guide.
Bid every job at the margin you want
The Contractor Job Costing Spreadsheet prices each bid from your costs and target margin, then tracks budget vs actual and progress billing, so you see the margin you really made. Excel and Google Sheets.
Questions
What markup do I need for a 30% margin?
A 42.9% markup. Divide the margin by one minus the margin: 0.30 ÷ 0.70 = 0.4286. On a $100 cost, the price is $142.86, which leaves $42.86 of profit, and $42.86 is 30% of $142.86.
What markup gives a 25% margin?
A 33.3% markup: 0.25 ÷ 0.75 = 0.3333. A $100 cost becomes a $133.33 price.
What markup gives a 50% margin?
A 100% markup. You double the cost: a $100 cost sells for $200, and the $100 profit is half of the price.
Why isn’t a 30% markup the same as a 30% margin?
Markup is measured against your cost and margin against your selling price. The price is always bigger than the cost, so the same dollar profit is a smaller percentage of the price. A 30% markup only gives a 23.1% margin.
What is the Excel formula to price for a target margin?
If the cost is in A2 and the target margin is in B2, use =A2/(1-B2) for the price and =B2/(1-B2) for the markup. Format the markup cell as a percentage.
Related guides
Tahir Abbas
Founder of Softotech Solutions. Tahir builds Excel and Google Sheets tools for small service businesses, including the free calculators on this site. Every number on this page is calculated from the formulas shown, not taken from outside data.