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Line calculator

Margin, profit, and markup explained

Quick definitions the way Quotelixa uses them on a line—so you can trust the numbers in front of you.

Why these numbers matter

Profit, margin, and markup are closely related, but they are not the same thing. If you treat them as interchangeable, it becomes much easier to underprice work, misunderstand discount impact, or think a line is stronger than it really is. Quotelixa shows them together so you can judge the line properly.

START WITH PROFIT

Profit is the money left after cost

Free & Pro

Profit is the simplest number to understand: it is what remains after the cost of the line has been taken away from the revenue.

  • If a line sells for £350.00 and costs £220.00, the profit is £130.00.
  • Profit is useful because it shows the cash left on that line.
  • It does not tell the whole story on its own, because a line can show profit in pounds while still being weak as a percentage.
  • That is why Quotelixa shows profit alongside margin and markup.
Quotelixa line result showing revenue, cost, and profit for a priced quote line
Profit shows the money left after cost has been removed from revenue.

MARGIN VS MARKUP

Margin and markup answer different questions

Free & Pro

Margin and markup both describe profit as a percentage, but they use different starting points. This is where pricing confusion often begins.

  • Margin shows profit as a percentage of revenue.
  • Markup shows profit as a percentage of cost.
  • Using the same example, £130.00 profit on a £350.00 sell price gives a margin of 37.1%.
  • The same £130.00 profit on a £220.00 cost gives a markup of 59.1%.
  • Both numbers are correct, but they are not the same number and should not be used as if they are.
Quotelixa result screen showing profit, margin, and markup percentages for the same quote line
Margin and markup use different bases, so the percentages are different.

USE THE RIGHT NUMBER

The right number depends on the pricing decision you are making. Quotelixa keeps the key measures together so you can read the line without mixing them up.

The right number depends on the pricing decision you are making. Quotelixa keeps the key measures together so you can read the line without mixing them up.

Use margin when

Free & Pro
  • You want to see profit as a percentage of revenue.
  • You are checking whether the selling price leaves enough room.
  • You want a clearer view of pricing quality after discount.
  • You are comparing the strength of one line against another.

Use markup when

Free & Pro
  • You want to understand uplift from cost.
  • You are building from cost up to a selling price.
  • You are checking how far above cost the line has been priced.
  • You need to explain or sense-check cost-plus pricing.

How discount changes the picture

Discount does not just reduce the selling price. It also changes the profit, margin, and markup underneath the line. That is why a line can still look acceptable on the surface while the commercial position has already weakened. Quotelixa helps you see that movement clearly instead of only showing the reduced price.

A simple way to think about it

Use profit when you want to see the money left. Use margin when you want to judge how strong the sale is as a percentage of revenue. Use markup when you want to understand how far above cost the line has been priced. All three numbers matter, but they should not be confused with one another.

How Quotelixa helps

Quotelixa shows profit, margin, and markup together so you can read the line properly instead of relying on guesswork. That makes it easier to check whether a line still works, see what discount has changed, compare the line against your minimum acceptable position, and avoid giving away more than you realised.

Related articles

Line calculator

How the line calculator works

Enter quantity, costs, list, and sell (or derive sell from a list discount). The tool normalises tax according to your settings and shows margin and warnings.

Pricing & versions

Free line calculator vs Quotelixa Pro

Free is for fast line-level maths and margin sense-checks. Pro is for whole-quote judgement, customer output, and operational reuse.

Deal intelligence

What is Deal intelligence?

Deal intelligence is the part of Quotelixa Pro that helps you read the live quote when discount pressure builds: where the quote is strong, where it is weak, where movement will hurt most, and what to do next in a real conversation.