Free Contractor Tool

Contractor Markup Calculator

Calculate selling price, gross profit, and margin from your job cost. Understand the difference between markup and margin — and what markup you need to hit your target profit.

Free Tool Markup vs Margin Reverse Calculator No Sign-Up

Markup Calculator

$

Materials + labor + overhead — your total cost to do the job

1%50%100%150%

Typical contractor markup: 15–50%. Specialty trades may use 50–100%+.

Results

Enter your cost and markup
to see selling price and profit

Markup vs Margin — What's the Difference?

These two numbers are often confused. Getting them wrong means leaving money on the table — or worse, losing money on jobs.

Markup

Markup is the percentage you add on top of your cost. A 25% markup on a $10,000 cost = $12,500 selling price.

Markup is calculated from cost. It's what you "mark up" the job.

Markup % = (Price − Cost) ÷ Cost × 100

Margin

Margin is the percentage of the selling price that is profit. A 20% margin on a $12,500 price = $2,500 profit.

Margin is calculated from price. It's what you keep after covering costs.

Margin % = (Price − Cost) ÷ Price × 100

Why This Matters

A 25% markup only gives you a 20% margin. If you quote a customer a "25% margin" but calculate 25% markup, you're earning less than you think.

Always be clear: are you targeting markup or margin? The numbers look close but the difference adds up fast.

Markup to Margin Conversion Table

Quick reference — what markup percentage equals what gross margin

Markup % Gross Margin % $10k Cost → Price $25k Cost → Price $100k Cost → Price
10%9.1%$11,000$27,500$110,000
15%13.0%$11,500$28,750$115,000
20%16.7%$12,000$30,000$120,000
25%20.0%$12,500$31,250$125,000
33%24.8%$13,300$33,250$133,000
40%28.6%$14,000$35,000$140,000
50%33.3%$15,000$37,500$150,000
67%40.0%$16,700$41,750$167,000
100%50.0%$20,000$50,000$200,000
150%60.0%$25,000$62,500$250,000

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