Markup vs margin
Your cost and your price in pounds give the profit, the markup and the margin. A margin you want gives the price that earns it.
The price for a margin needs only your cost and the margin you want.
The profit is exact to the penny. Markup and margin are rounded to one decimal place. The price for a margin is rounded to the nearest penny.
A cost of zero gives no markup, and a price of zero gives no margin. A wanted margin of 100% or more gives no price.
Markup and margin measure the same profit. When the cost is above zero and the job makes a profit, the markup is always the larger of the two.
Each line is one job told both ways, worked with the calculator’s own arithmetic.
A job costs you £1,240 and is priced at £1,650. The profit is £410. That is a markup of 33.1% on the cost and a margin of 24.8% on the price.
A 30% margin on the same cost needs a price of £1,771.43: 1,240 × 100 ÷ 70, rounded to the penny. Adding 30% to the cost instead gives £1,612, which is a margin of 23.1%.
From a quote’s first line, What you make shows the quote’s margin in money and as a percentage. Where the part on a quote line has a cost in the Price book, the line’s margin moves as the line’s price is typed.
On a wide screen, the Price book shows the Margin on each part and labour rate that has a cost. Before an invoice goes out, Cost so far on the job shows the margin against the agreed price, or against the hours and parts. Once one is out, What this job made on the job and Job profit under Performance show the job’s margin.
Warn when a job’s margin falls below, in Settings, takes a margin percentage, not a markup. A quote, a quote line or a job under that percentage is marked, so a line priced at a 25% markup sits under a warning set at 25%.