Markup vs margin: the calculator that sorts it for good
Sparkies who add a 30% markup and think they're making 30% margin are leaving thousands on the table every year. Run the numbers and see the difference.
Markup is what you add to your cost. Margin is the percentage of the sale price that's profit. They are not the same.
A 30% markup is actually a 23% margin. If you wanted a 30% margin, you'd need to add 43%. Try it below.
The 30% trap
A 30% markup is a 23.08% margin. Most sparkies think they're making 30. That gap is the silent profit leak in the trade.
Margin = sell minus cost, divided by sell
Cost ÷ (1 − desired margin) gives you the sell price. The Electrical Estimating Course breaks this down properly and shows you how to set tiered margins by job type.
Run the system, not just the numbers
The calculator gives you a snapshot. The Electrical Estimating Course gives you the whole system.
Stop guessing your quotes. Start estimating for profit.
Start the trial, take the course, or do both. The maths doesn't change either way.