General
Job Markup Calculator
Price jobs correctly by calculating the right markup, margin, and final selling price.
Markup vs. Margin: A 30% markup means you add 30% to cost - that’s only a 23.1% gross margin. A 30% margin means 30% of the price is profit - that requires a 42.9% markup. Most contractors confuse these. Use margin % to reverse-engineer your price from a profit target.
Common Questions
What is the difference between markup and margin?
Markup is the percentage you add on top of your cost. Margin is the percentage of the final price that is profit. A 30 percent markup gives you only a 23 percent margin. They are not the same number, and confusing them will cost you money.
What markup should a contractor charge?
Most contractors mark up materials 20 to 50 percent and labor 30 to 100 percent. The right number depends on your overhead and local market. Use this calculator to find the price that gives you the margin you need to stay profitable.
How do I price a job so I actually make money?
Add up all your costs including materials, labor, and subcontractors. Apply a markup that covers your overhead and leaves you a profit. Check your hourly rate calculator to make sure your labor cost is accurate before you price anything.
Why do so many contractors lose money on jobs?
Most contractors who lose money either underestimate costs, forget overhead, or confuse markup with margin. Pricing $1,000 of work at a 25 percent markup gives you $1,250 billed, but that is only a 20 percent margin. Build a habit of calculating margin, not just markup.
Want a website that wins more jobs?
TrueBlueGrowth builds professional contractor websites that convert visitors into leads.
Request a Free Demo