Free calculator
Construction Markup & Margin Calculator
Turn job cost into a price without the markup-vs-margin confusion. See the profit and true margin behind any markup, and the markup you need to hit a target margin. Free.
Markup is profit as a % of cost; margin is profit as a % of price. A 20% markup is only a ~16.7% margin, and the gap is what quietly erodes contractor profit.
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Markup vs margin: why it matters
Markup is profit measured against your cost. Margin is profit measured against your price. Because price is always bigger than cost, the margin is always a smaller number than the markup.
A 20% markup feels like 20% profit, but it is only a ~16.7% margin. Pricing every job off markup while thinking in margin is a quiet, steady leak in contractor profit. This calculator shows both at once.
FAQ
What is the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of the price. They are not the same: a 20% markup is only about a 16.7% margin. Confusing the two is one of the most common ways contractors underprice work.
How do I calculate price from a markup?
Multiply your cost by (1 + markup ÷ 100). A $1,000 job at 20% markup is $1,000 × 1.20 = $1,200, leaving $200 profit, which is a 16.7% margin on the $1,200 price.
How do I price a job to hit a target margin?
Divide your cost by (1 − margin ÷ 100). To make a 25% margin on a $1,000 job, price it at $1,000 ÷ 0.75 = $1,333, which requires a 33.3% markup, not 25%.