Markup and margin calculator for contractors

Mixing up markup and margin is one of the most common reasons contractors underprice. Enter your job cost and the margin you want, and this calculator gives you the price that actually hits it.

Price a job for a target margin

Total job cost ($)Labor with burden, materials, subs, equipmentTarget profit margin (%)

Price to charge$14,285.71

Gross profit$4,285.71

Equivalent markup42.9%

If you'd added the margin % as markup instead$13,000.00 (23.1% margin)

Convert a markup to margin

Total job cost ($)Markup (%)

Price$12,500.00

Gross profit$2,500.00

Actual margin20.0%

Add this calculator to your website

Free for contractors, trade associations, suppliers and bloggers. Paste this code into any page (in WordPress, use a Custom HTML block). Please keep the credit link.

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<p style="font-size:13px;margin:4px 0 0">Free <a href="https://fastsnappro.com/tools/markup-margin-calculator">markup and margin calculator</a> by <a href="https://fastsnappro.com">Fast Snap Pro</a></p>
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Put these numbers to work on every quote

Fast Snap Pro turns customer photos into itemized estimates priced from your own rates and markup, so every quote hits your margin without the math.

Try Fast Snap Pro free

Frequently asked questions

What is the difference between markup and margin?

Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. A $10,000 job sold for $12,500 has a 25% markup but a 20% margin.

How do I calculate the price for a target margin?

Divide your total cost by (1 minus the margin). For a 30% margin on a $10,000 cost, the price is $10,000 ÷ 0.70 = $14,286.

What markup gives a 30% margin?

About 43%. The formula is markup = margin ÷ (1 − margin), so 0.30 ÷ 0.70 = 0.4286.

What should job cost include?

Direct labor including burden (payroll taxes, workers' comp, insurance), materials, subcontractors, equipment rental, permits and disposal. If overhead isn't recovered in your labor rate, your margin has to cover it.