Markup vs margin.
Same leftover dollars. Two different percents. Markup is on cost. Margin is on the bid. Defaults are the Ridge HVAC EXAMPLE. Nothing stored.
- Dollars left
- $868.00
- Margin (on price)
- 35%
- Markup (on cost)
- 54%
Same $868 on the Ridge EXAMPLE is 35% margin and 54% markup. They are not interchangeable.
The formula, in plain English
Margin % = (price − cost) ÷ price. Markup % = (price − cost) ÷ cost. Price from a target margin = cost ÷ (1 − target margin). A 35% margin is not a 35% markup.
This is a sketch. Put the percent you meant on the next bid.