Markup & Margin Calculator
Enter your cost and markup to see the price to charge, your profit, and the true margin — so you stop confusing the two and leaving money on the table.
Markup is profit as a percent of your cost.
$1,350.00
Profit: $350.00
Markup and margin aren't the same. Markup is on your cost; margin is on the price. A 50% markup is only a 33% margin — quote on markup and your real profit is thinner than you think.
Estimate only. Set markup to cover overhead and target profit, not just job cost.
Markup ≠ margin — and the gap costs you
Pricing on markup when you meant margin quietly thins every job. For the full picture — estimating, overhead, and protecting profit — read how to price a construction job. And on SKILLS, anti-lowball guardrails keep market rates fair so utilizing downtime doesn't mean giving work away.
Common questions
What's the difference between markup and margin?
Markup is profit measured against your cost; margin is profit measured against the price you charge. A 50% markup ($1,000 cost → $1,500 price) is only a 33% margin, because the $500 profit is a third of the $1,500 price. Quoting on markup makes your real profit look bigger than it is.
What markup should a contractor charge?
There's no universal number — your markup has to cover overhead (office, trucks, insurance, idle time) plus your target profit, not just the cost of the job. Many trade businesses land well above the 10–20% people assume once overhead is honestly accounted for.
How do I convert markup to margin?
Margin = markup ÷ (100 + markup), as a percent. So 25% markup is a 20% margin, 50% markup is a 33% margin, and 100% markup is a 50% margin. This calculator shows both at once so you can price on the number that actually protects profit.
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