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Contractor Profit Margin & Markup Calculator

Understand the difference between markup and margin. Price your jobs correctly to ensure profitability and business success.

Calculate Your Selling Price

$

Materials + labour costs

%

Insurance, tools, vehicle, office

%

Industry standard: 15-20%

Results

Enter your numbers and click Calculate to see results

Understanding Markup vs. Margin

Profit Margin

Margin is the percentage of the selling price that is profit. It shows how much of each dollar you keep.

Margin = (Price - Cost) / Price × 100%

Markup

Markup is the percentage added to your cost. It's how much you increase the cost to get the selling price.

Markup = (Price - Cost) / Cost × 100%

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