Parts Markup Calculator

Select your industry to load recommended markups. These presets are based on what profitable shops in your trade typically charge - not pulled from thin air. You can adjust any percentage to match your market.

The preview table shows exactly what happens at each tier. A $5 capacitor with 350% markup becomes $22.50. A $750 compressor with 40% markup becomes $1,050. The math is done for you.

Adjust the price tiers if they don't match your parts mix. Some shops have more parts in the $50-$100 range. Others deal mostly in high-dollar equipment. Make the tiers fit your reality.

Toggle between markup and margin if you think in margin instead. The calculator converts automatically. Most trades owners use markup ("I mark up parts 3x") but some accountants and suppliers talk in margin.

Enter your business name to personalize the cheat sheet. This is optional - the PDF works fine without it.

Download the cheat sheet and print it. The design is intentionally simple - big numbers, high contrast, readable from across the shop. Tape it inside a cabinet door, put it on the parts counter, or laminate it for the trucks. When a tech needs to price a part, they look at the cost, find the tier, multiply.

Matrix pricing means different markup percentages for different price ranges. Cheap parts get high markups. Expensive parts get lower markups. It's not complicated, but most shops don't do it - and they leave money on the table.

Here's why it works: A customer doesn't blink at paying $22 for a $5 part. That's a 350% markup, but $22 feels reasonable for a repair part. But charge $1,500 for a $500 compressor? That's only 200% markup, but the customer is comparing to retail prices and getting quotes from other shops. You need to be competitive on the big stuff.

The inverse is also true. If you use a flat 50% markup across the board, you're undercharging on small parts. That $5 capacitor sells for $7.50. You made $2.50 and it took the same truck roll, same invoice, same overhead as selling the $500 compressor.

Matrix pricing captures more profit on small parts (where customers are price-insensitive) and stays competitive on large parts (where customers shop around). It's how the most profitable service businesses price their work.

Every service call has fixed costs that have nothing to do with parts: the truck roll, the dispatch time, the tech's drive time, the invoice processing. Whether you install a $3 fitting or a $3,000 unit, those costs are the same.

Small parts need to carry their weight. A $3 fitting with a 50% markup sells for $4.50 and makes you $1.50. That doesn't even cover the gas to get there. But with a 400% markup, that fitting sells for $15 - still a fair price the customer won't question - and now you've covered your overhead.

Large parts need to stay competitive. Customers don't comparison shop a $15 fitting, but they absolutely shop a $3,000 water heater. If your markup prices you out of the market on big-ticket items, you lose the job entirely. A 40-50% markup keeps you competitive while still making money.

This isn't about tricking customers. It's about pricing that reflects your actual costs. Small parts are expensive to handle relative to their value. Large parts are efficient to handle relative to their value. Your pricing should reflect that.

Markup and margin are both ways to express profit, but they use different denominators. The math matters because using the wrong one can cost you money.

Markup is profit divided by cost. If a part costs $100 and you sell it for $150, your markup is 50%. You added $50 on top of your $100 cost.

Margin is profit divided by sell price. Same example: $50 profit divided by $150 sell price = 33.3% margin.

Same dollars, different percentages. A 50% markup equals a 33.3% margin. A 100% markup equals a 50% margin. A 300% markup equals a 75% margin.

Most trades owners think in markup because it's intuitive - "I paid $100, I want to make $50, so I mark it up 50%." Accountants and business consultants often think in margin because it relates to revenue.

Use whichever makes sense to you. This calculator lets you switch between them. Just make sure everyone in your shop is using the same language - a tech who thinks "50% markup" and an office manager who thinks "50% margin" will price the same part very differently.

Quick conversion:

• Markup to Margin: Markup / (1 + Markup) = Margin
• Margin to Markup: Margin / (1 - Margin) = Markup

Or just use the toggle on this calculator.