Free tool
Markup & Margin Calculator for Contractors
Turn your job cost into a price. Enter a markup, or the margin you want to keep, and see the price, profit, markup and margin side by side.
Markup vs. margin
Markup is your profit as a percentage of your cost. Margin is your profit as a percentage of the price. They describe the same dollars, so a markup is always a bigger number than the margin it produces.
Example (illustrative): a job costs you $1,000 and you sell it for $1,250.
| Math | Result | |
|---|---|---|
| Profit | 1,250 − 1,000 | $250 |
| Markup | 250 ÷ 1,000 | 25% |
| Margin | 250 ÷ 1,250 | 20% |
The formulas
- Price from a markup: cost × (1 + markup)
- Price from a margin: cost ÷ (1 − margin)
- Markup you need for a margin: margin ÷ (1 − margin)
- Margin a markup gives you: markup ÷ (1 + markup)
Markup needed for each margin
| Margin you want | Markup to use |
|---|---|
| 10% | 11.1% |
| 15% | 17.6% |
| 20% | 25.0% |
| 25% | 33.3% |
| 30% | 42.9% |
| 35% | 53.8% |
| 40% | 66.7% |
| 50% | 100.0% |
Margin each markup gives you
| Markup | Margin you keep |
|---|---|
| 10% | 9.1% |
| 15% | 13.0% |
| 20% | 16.7% |
| 25% | 20.0% |
| 30% | 23.1% |
| 40% | 28.6% |
| 50% | 33.3% |
| 100% | 50.0% |
Pricing tip: A common mistake is aiming for a 20% margin and adding 20% to the cost. That only keeps about 16.7%. The Estimating Basics guide walks through how overhead and profit fit into the price.
Common questions
What is the difference between markup and margin?
Markup is profit as a percentage of your cost. Margin is profit as a percentage of the price. On a $1,000 cost sold for $1,250, the $250 profit is a 25% markup but a 20% margin.
What markup do I need for a 20% margin?
A 25% markup. To find the markup for any margin, divide the margin by (1 minus the margin). For example, 0.20 ÷ 0.80 = 0.25, or 25%.
Should overhead be part of my cost?
Your markup has to cover overhead and profit, or overhead has to be added to the cost first. Either way works as long as you are consistent. Trades HQ applies overhead and profit as separate lines on every estimate.
Is this calculator free?
Yes. It runs in your browser, and nothing you type is saved or sent anywhere.
This tool is general information, not legal, tax, or financial advice. Check your own costs and local rates.