How to calculate your margin and markup price

Markup is a percentage of your cost, while margin is a percentage of your price. Adding 50 percent markup to a RM 100 cost gives a RM 150 price, but your margin is only 33 percent. This calculator works in margin only, so the number you type is a share of the final price, not the cost.

1. Open Calculators and press Margin and markup.
2. Under Your costs, press Add cost to create a row, then type a cost item and its amount.
3. Use Flat amount for one off costs, Qty x rate for per day or kilometre, and Per pax for costs that repeat for every head.
4. Press Add cost for each further cost so the full cost of delivering the job is on screen.
5. Under Deductions, press Add deduction to list percentages that come off the price, such as an HRDC levy or agent commission.
6. In Margin to keep, type the margin you want as a percentage of the price.
7. Read Recommended quotation. The card under it shows your cost, each deduction in ringgit and the margin you keep, adding up to the price. The price excludes SST.

1. Take the markup you normally add, for example cost plus 50 percent.
2. Work out the price the old way once: RM 100 cost plus 50 percent is RM 150.
3. Divide the profit by that price, not by the cost: RM 50 over RM 150 is 33.3 percent.
4. Type 33.33 into Margin to keep and check the recommended price comes back to RM 149.99.
5. If you actually wanted to keep half the price, type 50 instead and watch the price jump to RM 200.

1. With a recommended price on screen, look at Negotiate the price.
2. Type a Discount % or a Discount (RM), or key the client's number into Or client's price (RM).
3. Read Your margin at this price. It turns red when the margin has gone negative.
4. Press Ask AI for a short written view on the same figures, if AI is switched on in Settings.
5. Write the agreed price down and put it on the real quotation, as nothing here is saved.