Margin = markup ÷ (1 + markup) · Markup = margin ÷ (1 − margin)
A 30% markup is a 23.1% margin. A 30% margin needs a 42.9% markup. On a $200 break-even job that comes to $260 versus $286, so you give away $26 a job when you read a margin target and apply it as a markup.
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Markup is profit against your cost, so price = cost × (1 + markup). Margin is profit against the price, so price = cost ÷ (1 − margin).
Why Owners Mix Them Up
Pricing guides online use both systems and rarely say which. Joist's guide (July 2026) works its example with a 30% markup. Housecall Pro (March 2026) recommends a 20-40% margin and prices with break-even ÷ (1 − margin), Jobber Academy's worked example uses a 30% margin, and UpFlip uses a 20% markup.
Conversion Table
| Percentage | Price at this markup ($200 cost) | Real margin | Price at this margin ($200 cost) | Markup needed |
|---|---|---|---|---|
| 10% | $220.00 | 9.1% | $222.22 | 11.1% |
| 20% | $240.00 | 16.7% | $250.00 | 25.0% |
| 25% | $250.00 | 20.0% | $266.67 | 33.3% |
| 30% | $260.00 | 23.1% | $285.71 | 42.9% |
| 35% | $270.00 | 25.9% | $307.69 | 53.8% |
| 40% | $280.00 | 28.6% | $333.33 | 66.7% |
| 50% | $300.00 | 33.3% | $400.00 | 100.0% |
Real margin = markup ÷ (1 + markup). Markup needed = margin ÷ (1 − margin). Rounded to one decimal.
A $200 Job, Priced Both Ways
Your break-even on a house wash is $200, counting your own labor, chemicals, fuel, equipment wear and a share of overhead. The pricing guide shows how to find yours. You want a 30% margin.
- Priced as a marginDivide by (1 − 0.30).$200 ÷ 0.70 = $285.71 → profit $85.71 = 30% of the price
- Priced as a markup by mistakeMultiply by 1.30.$200 × 1.30 = $260 → profit $60 = 23.1% of the price
- What the mix-up costsPer job, then per season.$25.71 × 150 jobs (example) = $3,857 a year
The gap widens as the target climbs. At the top of Housecall Pro's range, a 40% margin prices that job at $333.33, and if you apply 40% as a markup you quote $280, which is $53.33 short.
Why Discounts Hurt More Than They Look
Discounts come off the price, not the cost. Take 10% off the $285.71 job and you charge $257.14, so profit falls from $85.71 to $57.14 and your margin drops to 22.2%, which means a third of the profit is gone for a 10% cut. A smaller option beats a price cut (options instead of discounts).
Converter
Type in your break-even cost and a percentage to see the price both ways.
Which One to Use
Price on margin. Your profit and loss statement reports profit as a share of revenue, and card fees and discounts both come off the price. Published targets like Housecall Pro's 20-40% are margins too. If your quoting app has a "markup" field, convert with the table above and save the result in your price book once. Our editable price sheet holds those numbers, and the minimum charge guide runs on the same math.
Questions Owners Ask
Is a 30% markup the same as a 30% margin?
No. A 30% markup is a 23.1% margin. To keep 30% of the price, you need a 42.9% markup.
What margin should a pressure washing business aim for?
Housecall Pro's 2026 guide suggests 20-40%. Hulo, another software vendor, cites 20-30% net. Both are vendor figures. Start from your own costs, and remember your wage belongs in the cost, not the margin.
How do I convert markup to margin?
Divide the markup by 1 plus the markup, so 0.30 ÷ 1.30 = 23.1%. To go the other way, divide the margin by 1 minus the margin, so 0.30 ÷ 0.70 = 42.9%.
Can margin be over 100%?
No. Margin is profit as a share of the price, so it can't top 100%. Markup has no ceiling, and a 100% markup is only a 50% margin.
Sources
- Joist, "Complete Pricing Guide for Pressure Washing Businesses", Jul 15, 2026: the 30% markup example. Software vendor.
- Housecall Pro, "Pressure Washing Pricing Guide: 2026 Rates", Mar 9, 2026: 20-40% margin target and the cost ÷ (1 − margin) formula. Software vendor.
- Jobber Academy, "How to price pressure washing jobs", Oct 22, 2024: 30% margin worked example. Software vendor.
- UpFlip, how to price pressure washing jobs, modified Nov 2024: 20% markup.
- Hulo, how to bid commercial pressure washing jobs, Apr 3, 2026: 20-30% net (unsourced). Software vendor.