Parts Markup Calculator

Step 1: Enter the cost of the part. This is the amount you paid the supplier. Not your labor, not tax, not overhead — just the part itself.

Step 2: Choose whether you're pricing from a markup or from a margin. These are two different percentages and they are the single most common source of underpricing in the trades. Markup is measured against your cost; margin is measured against the selling price.

Step 3: Enter the percentage. A 50% markup adds half the cost back on top: a $100 part sells for $150. A 50% margin means half the selling price is profit: the same $100 part sells for $200.

The formula for markup is:

Selling Price = Cost + (Cost × Markup %)

Whichever way you enter it, the calculator reports both percentages for the price it lands on, so you can always see the other side of the number.

Example

An HVAC technician needs to replace a failed dual-run capacitor during a service call.

• Supplier cost: $18
• Markup percentage: 100%

Step 1: Calculate the markup amount. $18 × 1.00 = $18

Step 2: Calculate the selling price. $18 + $18 = $36

Step 3: Calculate the gross profit. $36 − $18 = $18 gross profit on this part

So an $18 capacitor sold at 100% markup gets priced at $36, generating $18 in gross profit before the labor to install it. That same price is a 50% margin — half the $36 is profit — which is the number that trips people up.

Comparing markup strategies. The same $18 part at different markups shows how much the strategy itself changes the outcome:

The calculator returns three figures that let you evaluate the price:

1. The selling price is what you charge the customer for that part.
2. The markup amount is how many dollars were added to your cost — the additional revenue from selling the part above what you paid for it.
3. The gross profit is what you keep after recovering the part's purchase cost.

Gross profit does not account for labor, inventory storage, insurance, software, vehicle costs, or rent. Those belong in your complete pricing strategy, and the Service Price & Profit Margin Calculator is where you price the whole job with them included.

Consistent pricing is one of the easiest ways to improve profitability.

Using a Parts Markup Calculator eliminates manual calculations, reduces pricing errors, and creates standardized pricing across your business. Technicians can generate accurate quotes faster, and owners can check whether the current markup percentages actually cover operating costs.

It also makes it easier to adjust pricing as supplier costs change. Whether you manage hundreds of inventory items or order replacement parts occasionally, it keeps every sale contributing to the bottom line.