Enter your job cost and desired markup or margin to calculate your selling price, profit, and conversion between markup and margin.
Markup and margin are two different ways to express the same relationship between cost, revenue, and profit — but confusing them can cost you thousands on a single job.
Markup is the percentage added on top of your cost. If a job costs $10,000 and you apply a 50% markup, you charge $15,000.
Margin is the percentage of the selling price that is profit. On that same $15,000 job, your profit is $5,000, which is a 33.3% margin.
| Trade | Typical Markup | Equivalent Margin |
|---|---|---|
| General Contracting | 15–25% | 13–20% |
| Electrical | 30–50% | 23–33% |
| Plumbing | 25–45% | 20–31% |
| HVAC | 30–50% | 23–33% |
| Roofing | 25–40% | 20–29% |
| Concrete | 20–35% | 17–26% |
Markup is the percentage added to your cost to get the selling price (based on cost). Margin is the percentage of the selling price that is profit (based on revenue). A 50% markup equals a 33.3% margin.
Most contractors use a markup between 20% and 50%, depending on the trade, project complexity, and market conditions. Specialty trades like electrical and HVAC often use 30-50% markup, while general contractors typically use 15-25%.
To convert markup to margin: Margin = Markup / (1 + Markup). For example, a 50% markup (0.50): Margin = 0.50 / 1.50 = 0.333 or 33.3%.
Calculate your profit margin from job costs and selling price. See revenue, profit, and margin percentage.
Enter your overhead, salary, and job economics to see exactly how much monthly revenue you need — and how many jobs that takes.
Calculate the true cost of employees including payroll taxes, workers' comp, insurance, and benefits. Know your fully burdened hourly rate.
Set your desired markup once and every estimate is priced correctly.
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