Can margin be 100%?
Not with a positive cost and a finite selling price. The formula divides cost by one minus the margin fraction. This tool rejects margins of 100% or more rather than displaying an invalid result.
FREE TOOL / PRICING MATH
Markup and margin.
Different percentages. Same project.
See how cost, selling price, and gross profit relate. Change the inputs to compare the two methods.
YOUR INPUTS
Price with intention.
Enter your cost and choose the percentage you want to apply.
$
Include every cost you intend to recover.%
Illustrative inputs. No market prices are implied.
THE RESULT
Selling price$12,000.00Project cost$10,000.00
Gross profit$2,000.00
Markup20%
Margin16.67%
THE FORMULA
Price = cost × (1 + markup ÷ 100)20% markup produces 16.67% margin.
Why a 20% markup is not a 20% margin
Markup divides gross profit by cost. Margin divides gross profit by selling price. On an illustrative $10,000 cost, a 20% markup produces a $12,000 selling price and a 16.67% gross margin. To produce a 20% gross margin on that same cost, the selling price is $12,500.
Gross profit is not net profit. The result depends on which costs you put in the base. Overhead, finance, taxes, and other expenses may still need to be recovered. This is an arithmetic tool, not a recommended pricing strategy or a construction quote.
Review the cost-estimating guide and bid checklist to connect the calculation to a defined scope. Calculations stay in the current browser session.
A FEW USEFUL ANSWERS
Questions, clarified.
Does the result include sales tax or overhead?
Only if you included them in the cost base. The calculator does not infer missing cost categories or determine tax treatment. Identify the costs you intend the selling price to recover.
LET’S DEFINE THE SCOPE
Your drawings. A clearer next step.
Start with your project location, document set, and bid deadline.