Markup vs margin calculator for contractors

Markup is added on top of your cost; margin is the share of the price you keep. A 25% markup is not a 25% margin. Enter your job cost to see both directions. Nothing is saved or sent anywhere.

The table is arithmetic only, not a recommendation: it converts each percentage both ways. Your job cost should include labor, materials, equipment, disposal and overhead.

How it works

Price at a markup = cost × (1 + markup). Margin = profit ÷ price = markup ÷ (1 + markup). Price for a target margin = cost ÷ (1 − margin). Markup needed = margin ÷ (1 − margin).

Worked example (the values above): a $4,000.00 job cost with a 25% markup is $4,000.00 × 1.25 = $5,000.00. Your profit is $1,000.00, which is 20.0% of the $5,000.00 price, so a 25% markup gives a 20.0% margin. To keep 25% of the price instead, charge $4,000.00 ÷ (1 − 0.25) = $5,333.33: profit $1,333.33, which is a 33.3% markup on cost ($1,333.33 ÷ $4,000.00).

Price whole jobs with the handyman pricing calculator or check a finished job with the job profit calculator. See also all calculators.