Markup & Margin Calculator
Enter what a job costs you, then choose a markup or the profit margin you want. You get the price to charge and what you actually keep.
Results are estimates for planning only. Always confirm measurements, local codes and manufacturer specs before ordering materials or quoting a job. See our Terms.
Markup vs. margin: the difference that costs contractors money
Markup is a percentage of your cost. Margin is a percentage of the price. They are not the same: a 30% markup only gives you a 23% margin.
If you want to keep 30% of every job as profit, you need about a 43% markup. Many contractors mark up 30% thinking they make 30%, and come up short at the end of the year.
Quick reference
- 20% markup = 16.7% margin
- 30% markup = 23.1% margin
- 50% markup = 33.3% margin
- 100% markup = 50% margin
Questions
What is a good markup for contractors?
Many residential contractors use 30% to 50% markup on materials and price labor to reach a 20% to 35% gross margin. The right number depends on your overhead, so calculate your real costs first.
How do I calculate markup?
Price = cost x (1 + markup %). For example, a $1,000 job with a 30% markup is $1,000 x 1.30 = $1,300.
How do I calculate price from a target margin?
Price = cost / (1 - margin %). For a 30% margin on a $1,000 cost: $1,000 / 0.70 = $1,428.57.