Contractor Markup Calculator
Calculate customer price from job cost using markup or margin. Know exactly what to charge.
Markup and margin are two different ways to express your profit on a job. Many contractors confuse them, which can lead to underpricing. This calculator instantly converts between the two and shows you exactly how much profit you're making.
tune Your Numbers
payments Your Price
Customer Price
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Your Profit
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Effective Markup
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Effective Margin
school Markup vs Margin: What's the Difference?
Markup is based on your cost. If something costs you $100 and you add a 50% markup, you charge $150. The markup percentage is calculated from what you paid.
Margin is based on the selling price. If you sell something for $150 and your cost was $100, your margin is 33.3% (the $50 profit is 33.3% of the $150 price).
The key insight: A 50% markup only gives you a 33.3% margin. Many contractors aim for a 50% markup thinking they're getting 50% profit—but margin tells the true story of your profitability.
How to Use This Calculator
- Enter your cost (materials + labor)
- Enter either your desired markup percentage OR your selling price
- The calculator shows your profit margin, gross profit, and selling price
- Use the comparison to understand the relationship between markup and margin
Markup vs Margin: What's the Difference?
Markup is calculated based on your COST. Margin is calculated based on your SELLING PRICE. This is why a 50% markup doesn't equal a 50% margin.
| Markup % | Equals Margin % | Example ($1000 cost) |
|---|---|---|
| 15% | 13% | Sell for $1,150 / Keep $150 |
| 20% | 16.7% | Sell for $1,200 / Keep $200 |
| 25% | 20% | Sell for $1,250 / Keep $250 |
| 30% | 23% | Sell for $1,300 / Keep $300 |
| 40% | 28.6% | Sell for $1,400 / Keep $400 |
| 50% | 33.3% | Sell for $1,500 / Keep $500 |
| 75% | 42.9% | Sell for $1,750 / Keep $750 |
| 100% | 50% | Sell for $2,000 / Keep $1,000 |
Key Formula
Markup to Margin: Margin = Markup ÷ (1 + Markup)
Margin to Markup: Markup = Margin ÷ (1 - Margin)