Free Contractor Markup Calculator
Enter your total job cost and desired markup to see the selling price, gross profit, and the actual gross margin created by that markup.
Contractor Markup Calculator
Markup is applied to cost. Margin is profit divided by selling price, so the two percentages are not the same.
Markup vs. margin for contractors
Markup is the percentage you add to your cost. Gross margin is the percentage of the final selling price that remains after direct job cost. A 35% markup does not create a 35% margin; it creates a lower margin because profit is measured against the higher selling price.
Contractors commonly use markup to build prices quickly, but margin is usually the better metric for checking whether the final bid leaves enough room to cover overhead and profit.
What costs should be included before markup?
Use a realistic job cost that includes loaded labor, materials, equipment, subcontractors, disposal, travel, and other direct costs that will actually be consumed by the work. Leaving costs out makes any markup percentage look more profitable than it really is.
FAQ
What is a 30% markup on $10,000?
A 30% markup on $10,000 produces a $13,000 selling price and $3,000 gross profit before overhead not included in job cost.
Is 30% markup the same as 30% margin?
No. Markup is based on cost while margin is based on selling price. They are different calculations.
Should contractors price from markup or target margin?
Either can be used, but target-margin pricing makes it easier to confirm the percentage of selling price left after direct cost.
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