Use this contractor markup calculator to turn your job costs into a selling price and see exactly what profit margin that price delivers. Enter materials, labor, subs, equipment, contingency and overhead, choose a markup or a target margin, and get the price, profit and both percentages instantly.
Diagram updates with your numbers when you calculate. Markup is measured against cost; margin is measured against price.
Slide to compare prices. Type a value above the slider range if needed.
Estimates only. By using this calculator you agree to our Terms.
On the "Price a job" tab, enter your direct costs for materials, labor, subcontractors and equipment or permits. Add a contingency and an overhead percentage, then choose either a markup on cost or a target margin on price. The calculator returns the selling price, dollar profit, markup, margin, a line-by-line breakdown and a markup-versus-margin comparison for your exact job. On the "Check a bid" tab, enter your cost and the price you plan to quote to see the markup and margin that bid actually earns.
Confusing markup with margin is one of the most expensive mistakes in contracting. A contractor who adds 20% to cost believes they are earning a 20% profit, but the margin on the invoice is only 16.7%. On a $60,000 remodel that gap is roughly $2,000 of profit that never shows up. If you wanted a true 20% margin, you needed a 25% markup.
Small errors compound across a year of work. A remodeler doing $800,000 in annual sales at a real 16.7% margin instead of 20% leaves about $26,000 on the table. Specialty trades, handymen and general contractors all face the same arithmetic, and so do owners reviewing bids who want to know how much room a quote has. Lenders and bonding companies also look at margins, not markups.
Use this tool when you build an estimate, when a client pushes back on price and you need to know how low you can go, or when you are comparing a subcontractor's quote against your own numbers. It also helps when you are translating advice from other trades, because "we mark up 35%" and "we target 26% margin" describe the same job.
The calculator uses plain business arithmetic. No building code applies here, and results are pricing estimates, not tax, accounting or legal advice.
Dollar amounts are rounded to the nearest cent. A margin of 100% or more is impossible, because profit can never equal or exceed the price, so the tool accepts target margins up to 99.9%.
A kitchen remodel has $18,000 in materials, $12,000 in labor, $6,000 in subcontractors and $1,500 in permits and equipment.
If you wanted a 25% margin on this job instead, the price would be 43,125 ÷ 0.75 = $57,500, which needs a 33.3% markup.
Markup is profit as a percentage of cost, while margin is profit as a percentage of the selling price. Because price is always larger than cost, margin is always the smaller number. A 25% markup equals a 20% margin.
It depends on trade, region, competition and overhead. Many residential contractors work with overhead plus a profit markup of roughly 10–25% on top, but there is no universal figure. Start from your own overhead and the net profit you need, then test the price against your local market.
Divide the markup by one plus the markup: 0.25 ÷ 1.25 = 0.20, or 20%. To go the other way, divide the margin by one minus the margin: 0.20 ÷ 0.80 = 0.25. The comparison table in the results shows common conversions.
Yes, if you want the markup to represent profit. This calculator adds overhead into total cost first, so the markup or margin you select is what remains after paying for the business. If you treat overhead as part of the markup, use a higher percentage and set the overhead field to zero.
A 20% gross margin on a job is common, but it is not the same as net profit. After overhead you may keep far less, and net profit in construction is often cited in the single digits to low teens. Judge your margin against your own books and local conditions.
Sales tax is not added, because rules differ by state and by whether materials or labor are taxable. Enter permit fees and equipment rentals in the "Equipment, permits & other" field. Add financing costs and taxes separately, and check local licensing and lien rules.
Calculator by Toolwick