How to use the calculator
- Enter the Cost, such as a freelancer’s invoice, media spend or a licence.
- Enter the Markup percentage you want to add.
- Pick your currency and read the selling price, the profit and the equivalent margin.
FREE MARKUP CALCULATOR
Markup calculator.
From cost to price.
Add a markup to any cost, such as a freelancer, media spend or a third-party licence, and see the price, the profit and the margin it equals.
Free. No signup. Runs in your browser.
Cost and markup
What the work, product or third-party service costs you.
Runs in your browser. Nothing you enter is sent to Angelwood or stored on a server.
Result
Selling price: £2,500.00
- Selling price
- £2,500.00
- Profit
- £500.00
- Equivalent margin
- 20.0%
How markup works
- Selling price = cost × (1 + markup).
- Profit = selling price − cost.
- Equivalent margin = markup ÷ (1 + markup).
The tool runs entirely in your browser. Nothing you type is sent to Angelwood or saved on a server.
Markup and margin side by side
| Markup | Margin |
|---|---|
| 10% | 9.1% |
| 25% | 20.0% |
| 33.3% | 25.0% |
| 50% | 33.3% |
| 100% | 50.0% |
Worked example
An agency subcontracts development for £2,000 and adds a 25% markup for managing it. The client pays £2,500, the agency keeps £500, and that’s a 20% margin on the price.
DO IT IN ANGELWOOD
Price the work, then track whether it paid.
Angelwood sends estimates and proposals, then compares what each project earned with what it cost in its profitability report.
How do I calculate markup?
Divide profit by cost and multiply by 100. If something costs £80 and you sell it for £100, the markup is 25%.
Why is markup higher than margin?
Markup divides profit by the smaller number (cost); margin divides it by the larger number (price). The same profit always gives a higher markup percentage.
Should agencies mark up third-party costs?
Many do, to cover the time spent buying and managing them, but it should be agreed with the client. Say in your proposal how pass-through costs are charged.
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