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Cost Day

Markup and margin

Add overhead and profit, and keep the two apart.

Markup is added on top of cost. Margin is the share of the price you keep. People mix them up all the time. These posts set the sums side by side, with made-up numbers that are always labelled as examples.

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Configure 8 profit settings in your estimating tools Set eight profit settings so markup and margin use the right formula, cost basis, rate, and conversion in your estimating tools. 10 min read