Contractor Markup Calculator

Enter your cost and either a markup or a target margin. See what to charge and the difference between markup and margin (they're not the same thing).

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Results

Selling price $750
Profit (selling price − cost) $250
Markup % 50.0%
Margin % 33.3%

Markup vs margin — the source of every contractor pricing mistake

These two terms get used interchangeably and they shouldn't. They are different math:

  • Markup = profit ÷ cost. A $500 cost sold for $750 has $250 profit on $500 cost = 50% markup.
  • Margin = profit ÷ selling price. The same job has $250 profit on $750 revenue = 33.3% margin.

The numbers people quote in conversation are usually markup ("I mark everything up 50%"), but the numbers your accountant talks about are usually margins. Mixing them up is how contractors think they're at 50% profit and discover they're really at 33%.

Quick reference: markup → margin

  • 20% markup = 16.7% margin
  • 30% markup = 23.1% margin
  • 50% markup = 33.3% margin
  • 67% markup = 40% margin
  • 100% markup = 50% margin
  • 150% markup = 60% margin

If a supplier or competitor talks about "50% markup," that's a 33% margin. If your accountant says "you need 33% margin," that's 50% markup. Same job, different language.

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