Parts markup calculator: price, markup and margin
The selling price of a part from its cost and your markup, the margin that leaves you, and the markup you need to hit a target margin.
Your numbers
See your resultResult
Selling price $108.00$28.00 profit on the part Margin at that price 25.9%profit ÷ price Markup for a 30% margin 42.9%sell at $114.29 Stop working this out by handFleetZap puts parts and labor on each work order, and finished work can be invoiced through QuickBooks Online.
See FleetZap Maintenance · Try the demoThe formula
Price = Cost × (1 + Markup) · Margin = (Price − Cost) ÷ Price · Markup for a margin = Margin ÷ (1 − Margin)
Markup is measured on cost and margin on price, so they are never the same number. With the example: an $80 part at 35% markup sells for $108, a margin of 25.9%. To earn a 30% margin you need a markup of 42.9%.
Using the numberWhat to do with it
- Many shops use a sliding markup: a higher percentage on cheap parts and a lower one on expensive ones, so prices stay fair at both ends.
- Check margin, not markup, against your targets; it’s what shows up in the accounts.
- In-house fleets often charge parts at cost to the machine, so the machine’s cost stays true, and leave markup to customer work.
Guides behind this calculator
Parts inventory software Spare parts inventory Parts managerMore free calculators
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The heart of FleetZap, and everything a maintenance team needs in one place: work orders and preventive maintenance, inspections and the field app, plus a parts store with purchasing, compliance and certificate tracking, multi-location assets with a full lifecycle, and the KPIs that prove it’s working.
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Good to know
What is the difference between markup and margin?Markup is profit as a share of cost; margin is profit as a share of price. An $80 part sold for $108 has a 35% markup but a 25.9% margin.
How do I find the markup for a target margin?Markup = margin ÷ (1 − margin). A 30% margin needs a 42.9% markup.
Should parts markup be the same on every part?Many shops use a sliding scale: a higher markup on low-cost parts and a lower one on expensive parts, so prices stay reasonable at both ends.
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