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Pricing & profitability

Markup & margin calculator

A 50% markup is only a 33% margin — and mixing them up is how good jobs turn into bad ones. Enter your cost and work out the sell price, markup and margin in one place.

The job
Enter your cost, then tell us what you know — we’ll work out the rest.
Sell price (ex GST)
$1,400.00
That’s $400.00 profit on a $1,000.00 cost.
Profit$400.00
Markup40.0%
Margin28.6%

In traqR you set markups once in your price book — every quote applies them automatically, so you never undercut your margin by accident.

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How it works

1

Start with cost

Add up materials and labour at cost — that’s the number markup and margin are both measured against.

2

Markup adds on top

Markup is a percentage of your cost. It’s how you build the price up from what the job cost you.

3

Margin is what you keep

Margin is profit as a percentage of the sell price. It’s the number that tells you how healthy the job actually is.

Frequently asked questions

What’s the difference between markup and margin?

Markup is profit measured against your cost; margin is profit measured against the sell price. A 50% markup is only a 33% margin. They’re easy to confuse, and confusing them is one of the most common ways trades businesses quietly lose money.

Which one should I use to price jobs?

Use markup to build the price up from cost, but check the margin to make sure the job is actually worth doing. Two jobs can have the same markup but very different margins once you account for cost mix.

Does this include GST?

No — these are ex-GST figures. Add 10% GST on top when you invoice if you’re registered. Use the GST & BAS calculator for that.

A general pricing guide, not financial advice. Always set prices based on your real costs and market.

Lock in your margins

traqR applies your markups automatically on every quote, so the margin you planned is the margin you get. Try it free for 14 days.

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