A margin is not a markup.
To earn a 35% gross margin on an $80 item, charge at least $123.08. Adding 35% to cost does not reach that margin.
Cost ÷ (1 − Margin ÷ 100)Target selling price
Start with the margin you want to keep.
What you know
in US dollars
What the item costs you, ready to sell.
as a percentage
The share of each sale you want to keep.
What you get
$123.08
$43.08 gross profit per item at this price.
$43.08
per item
35%
at the rounded price
Required prices round up to the next cent when needed, so the price reaches your target margin.
35% margin53.85% markup
Understand the numbers
The last cent matters.
$123.07 falls just below the target. Required prices round upward; the achieved margin uses that actual price.
Price rounded up to $0.01Start with the whole job cost.
If materials cost $75 and direct labor costs $45, use $120 as cost. A 45% target margin gives a minimum selling price of $218.19 and $98.19 in gross profit before other expenses.
$120 ÷ 0.55 → $218.19Check the price you actually quote.
If you round that quote down to $215, the margin becomes about 44.19%, below the 45% target. Use Price & margin to check your final quote after rounding or negotiating.
($215 − $120) ÷ $215 × 100