Professional
Quote Margin Calculator
Margin and markup both describe profit on a quote, but they are calculated against different bases and mixing them up leads to quotes priced lower than intended. This calculator takes your cost and sell price and returns both figures side by side so you can price with the one your business actually targets.
Margin $
$400.00
Margin %
33.3%
Markup %
50.0%
Results are indicative only. Rates, transit times, classifications, and charges vary by carrier, lane, and contract. For binding quotes, post a request on CargoLinked or contact your forwarder.
How it works
Both formulas start from the same profit figure — sell price minus cost — but divide it by a different number. Margin divides profit by the sell price, so it tells you what share of the revenue you actually keep. Markup divides the same profit by the cost, so it tells you how much you added on top of what you paid.
Because sell price is always higher than cost when you are profitable, margin is always a lower percentage than markup on the same quote. A 25% markup on cost produces a 20% margin on sell, not a 25% margin — treating the two as interchangeable is the most common pricing mistake in freight sales.
Margin % = (Sell − Cost) ÷ Sell × 100 Markup % = (Sell − Cost) ÷ Cost × 100
Worked example
Cost $800, sell price $1,200
- Profit$1,200 − $800 = $400
- Margin %$400 ÷ $1,200 × 100 = 33.3%
- Markup %$400 ÷ $800 × 100 = 50.0%
Margin: 33.3% · Markup: 50.0%
Frequently asked questions
What's the actual difference between margin and markup?
Margin is profit divided by sell price (what share of revenue is profit); markup is profit divided by cost (how much you added on top of cost). They use the same profit figure but different denominators, so they are never equal except at 0% — a 50% markup always corresponds to a lower margin percentage, not the same number.
How do I convert between margin and markup?
Markup % = Margin % ÷ (1 − Margin %), and Margin % = Markup % ÷ (1 + Markup %), both expressed as decimals before converting back to a percentage. In this tool's worked example, a 33.3% margin converts to a 50% markup, and working it backward from 50% markup gives 33.3% margin — the two describe the same $400 of profit from different reference points.
Should I price quotes on margin or markup?
Margin is generally the more useful figure for freight sales because it ties directly to revenue and is what most P&L reporting is built around, making it easier to compare across quotes of different sizes. Markup is more intuitive when you are thinking "how much do I add on top of what the carrier charges me," which is how many forwarders build a quote line by line. Neither is wrong — just be consistent about which one you and your team are targeting.
What is a typical margin for a freight forwarder quote?
There is no single industry-standard figure — margin varies widely by lane, mode, service complexity, volume commitment, and how competitive the shipper's other quotes are. Forwarders typically set a minimum margin threshold internally and adjust from there based on relationship value and capacity, rather than targeting one fixed percentage across all business.
What happens if my sell price equals my cost, or is below it?
If sell equals cost, profit is zero and both margin and markup show 0% — there is no spread to divide. If sell is below cost, both figures go negative, flagging a loss on that quote. The one exception is a cost or sell price of $0 or less, which is not a real pricing scenario, so the calculator shows all zeros there rather than a negative or undefined percentage.
Related tools
Estimates & assumptions
- Cost and sell price are treated as single all-in figures — the calculator does not break out carrier cost, overhead, or fees separately.
- Margin and markup context varies widely by lane, mode, and market; no target percentage is implied.
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