Job costs and profit
Markup vs margin for tradespeople
Markup measures the uplift over cost.
The short answer
Markup measures the uplift over cost.
Markup measures the uplift over cost. Margin measures the result as a share of selling price. They use different denominators, so a 25% markup is not a 25% margin. Use one clearly defined cost base when comparing them.
Explore the wider job costing and profit guides for the steps around this decision.
The same job, two calculations
| Calculation | Formula | Illustrative outcome |
|---|---|---|
| 25% markup on EUR 80 cost | 80 × 1.25 | EUR 100 selling price |
| Margin at that EUR 100 price | (100 − 80) ÷ 100 | 20% |
| Price for 25% margin on EUR 80 | 80 ÷ (1 − 0.25) | About EUR 106.67 |
The inputs are examples, not a recommended margin for any Irish trade. Rounding can affect a displayed percentage slightly.
Define what ‘cost’ means
If EUR 80 excludes travel, equipment or overhead, the resulting percentage does not include those costs. Do not label a direct-cost calculation as complete business net profit. Keep the tax basis consistent between cost and price, with appropriate accounting advice.
Use the right rule in the price book
Write the calculation method alongside repeatable service lines. If one person applies markup and another assumes the result is margin, apparently similar quotes can produce different returns.
After a job, compare actual assigned costs with the price. A correctly applied formula cannot protect against a labour estimate that omitted one crew member’s time.
JobDiary’s quote and cost records can help keep inputs associated with work, but the business must still define its pricing method and verify report terminology. Mathematics distinguishes the two percentages; it does not establish what customers will accept or what return your business needs.
Connect this to the next step
Continue with How to spot jobs that were completed but never invoiced. If the next issue is elsewhere in the workflow, use How to build a price book for a small trades business.
See JobDiary job costing to check how the product supports this work. Use the current product description and a trial to verify the fit for your business.
Sources and scope
Source scope reviewed on 1 October 2026. Worked examples are illustrative; they are not market averages or customer results.
When it is in JobDiary.
The method above is the point. This is what it looks like when the diary is doing it for you.
See how it works| Time | Job | Status |
|---|---|---|
| 08:30 | 7 The GreenMow, edge, hedge | Done |
| 09:15 | 23 Seabury DriveMow, weed | Done |
| 10:00 | 9 Brookfield LawnMow, feed | In progress |
| 11:05 | 12 Castle ParkMow, hedge rear | Next |
| 12:00 | 31 Church RoadMow | Scheduled |
| 13:15 | 18 The RiseMow, edge, bins out | Scheduled |
Product screens use demonstration data.
What this guide is based on
JobDiary was developed around a real Co. Louth trades operation with2 vans and live business records since 2025. This guide provides an editorial framework; worked examples are illustrative. Product screenshots use demonstration data.
