Margin and markup look similar but produce very different prices. This guide explains the formulas, shows a conversion table, and walks through a real contractor example.
Markup = profit / cost. Margin = profit / selling price. Same dollar profit, different denominators — and very different percentages.
Ready-to-use table: 20% margin = 25% markup, 30% margin = 43% markup, 40% margin = 67% markup, 50% margin = 100% markup.
Applying a 30% markup when you meant a 30% margin can quietly drain tens of thousands of dollars per year from a small contracting business.