Parts Markup Calculator
Convert between markup and margin, calculate selling prices, and see how different markups affect your profit.
10%150%
Quick presets (NZ averages)
Sell price
$150.00
Profit
$50.00
Margin
33.3%
Markup vs Margin
Markup (50.0%): The percentage you add to your cost. $100 + 50.0% = $150.00
Margin (33.3%): The percentage of the sell price that is profit. $50.00 ÷ $150.00 = 33.3%
Visual Breakdown
Cost $100
Profit $50.00
Total: $150.00
Markup to Margin Conversion Table
| Markup % | Margin % | $100 part sells for |
|---|---|---|
| 20% | 16.7% | $120 |
| 30% | 23.1% | $130 |
| 40% | 28.6% | $140 |
| 50% | 33.3% | $150 |
| 60% | 37.5% | $160 |
| 75% | 42.9% | $175 |
| 100% | 50% | $200 |
Remember: A 50% markup only gives you 33% margin. To achieve 50% margin, you need 100% markup.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added to cost price (e.g., $100 cost + 50% markup = $150 sell). Margin is profit as a percentage of sell price (e.g., $50 profit / $150 sell = 33% margin). The same sale can be described as 50% markup OR 33% margin.
What is a good parts markup for automotive workshops in NZ?
NZ workshops typically use tiered markup: 80-100% on small parts (filters, bulbs), 40-60% on medium parts (brakes, belts), and 25-35% on large/expensive parts (engines, gearboxes). The average gross profit margin on parts is around 41%.
How do I convert markup to margin?
Use the formula: Margin = Markup / (100 + Markup) x 100. For example, 50% markup = 50 / 150 x 100 = 33.3% margin. Or use our calculator above to convert instantly.
Should I use the same markup on all parts?
No, most workshops use tiered markup based on part cost. Higher markup on cheap parts (where dollar profit is low) and lower markup on expensive parts (where customers are more price-sensitive). This maximises overall profit.
How much profit should parts contribute to my workshop?
Parts should contribute 30-40% of total workshop profit in a well-run business. If your parts profit is lower, review your markup strategy. Workshop management software can automate markup rules by category or price tier.
Automate Parts Markup in Your Workshop
Hoist lets you set markup rules by category, supplier, or price tier. Parts get priced automatically.
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