CalcGrove

Contractor Markup & Margin Calculator

Calculate the right markup percentage and profit margin for your contracting jobs. Enter your cost and desired markup to see the selling price and margin instantly.

$

Materials, labor, and overhead

%

Typical range: 10%–50%

Selling Price

$1,500.00

Markup Amount

$500.00

Profit Margin

33.3%

Profit

$500.00

How to Use This Calculator

  • 1.Enter your total job cost including materials, labor, and overhead.
  • 2.Set your desired markup percentage.
  • 3.See the selling price, profit margin, and dollar profit instantly.

The Formula

Selling Price = Cost × (1 + Markup%/100)

Margin% = (Selling Price - Cost) / Selling Price × 100

Markup is a percentage added to cost. Margin is profit as a percentage of the selling price. A 50% markup equals a 33.3% margin — they are not the same number.

Example Calculation

A remodeling job costs $10,000 in materials and labor. With a 50% markup:

  • Selling price: $10,000 × 1.50 = $15,000
  • Markup amount (profit): $5,000
  • Profit margin: $5,000 / $15,000 = 33.3%

Why This Matters

Confusing markup with margin is one of the most common pricing mistakes contractors make. A 20% markup only gives you a 16.7% margin — meaning your actual profit is lower than you think. Understanding both numbers helps you price competitively while maintaining healthy profits.

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Frequently Asked Questions

What markup should a contractor use?

Most contractors use a markup between 10% and 50%, depending on the trade, region, and competition. General contractors typically mark up 20%–35%, while specialty trades may go higher.

What's the difference between markup and margin?

Markup is calculated on cost (what you pay), while margin is calculated on selling price (what the customer pays). A 50% markup results in a 33.3% margin.

How do I calculate margin from markup?

Margin = Markup / (1 + Markup). For example, a 25% markup: 0.25 / 1.25 = 20% margin.

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