Markup vs margin calculator
Price materials correctly, and see instantly why a 50% markup is not a 50% margin — the confusion that quietly costs trades money on every parts-heavy job.
Markup and margin are not the same number
Markup is calculated on what the item cost you. Margin is calculated on what you sold it for. Because the two use different denominators, the same job produces two different percentages — and the margin is always the smaller one.
A part costing $100 sold at $150 carries a 50% markup but only a 33% margin. If you needed a 50% margin, you would have to charge $200 — a 100% markup. Quoting one when you meant the other is a third of your profit, on every part you fit.
What markup is normal on parts?
Marking up materials is not opportunism. You paid for the part in advance, drove to collect it, carry the risk if it fails, and warranty it afterwards. That work is real and it has to be paid for somewhere.
Common practice in the trades runs from around 20% on large, easily price-checked items to well over 100% on small consumables. If a customer may look the part up online, consider showing it at closer to retail and charging your time honestly instead — an invoice that invites a price comparison you will lose is worth avoiding.
Invoicify Pro keeps parts and labor as separate line items, so your pricing is explainable and the totals add themselves.
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