Free Tool
Markup and Margin Calculator
Margin and markup between what you pay per hour and what you bill, or the bill rate you need for a margin.
What you pay per hour
What the client pays per hour
Margin
37.5%
$45.00 per hour on a $75.00 cost.
Margin
37.5%
of the bill rate
Markup
60.0%
on the cost rate
40 hours
$1,800.00
profit
per.hr keeps a private cost rate for each person on each project and shows profit by person and project. Start free
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Questions
What's the Difference Between Markup and Margin?
Markup is profit as a share of cost; margin is profit as a share of price. Paying $75 and billing $120 is a $45 profit: a 60% markup and a 37.5% margin.
How Do I Find the Bill Rate for a Margin?
Divide the cost by one minus the margin. For a 40% margin on a $75 cost: $75 ÷ 0.60 = $125 per hour.
What Margin Do Agencies Aim For on Contractor Time?
Many aim for 30% to 50% of what the client pays, enough to cover managing the work, sales and unbilled time. It varies by field and client.
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