Markup and margin are not the same number.
A 50% markup is only a 33% margin. Confusing the two is the quietest way contractors quote themselves out of profit. Enter your cost and one figure — this fills in the rest.
Price to charge the client
Profit on the job
| If your markup is… | your margin is really… |
|---|---|
| 15% | 13.0% |
| 20% | 16.7% |
| 25% | 20.0% |
| 35% | 25.9% |
| 50% | 33.3% |
| 67% | 40.1% |
| 100% | 50.0% |
Build it into every bid
The estimate template prices at the margin you choose.
Contractor Estimate Calculator (General)
Materials + labor + markup with the margin math handled for you — for GCs, remodelers, and any trade. Set your target and it prices the job correctly every time.
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Quick answers
Markup vs. margin FAQ.
What’s the actual difference?
Markup is a percentage of your cost; margin is a percentage of the price. Markup of $1,000 cost → $1,500 price is a 50% markup but a 33.3% margin, because $500 profit is half the cost but a third of the price.
How do I convert margin to markup?
Markup = margin ÷ (1 − margin). For a 40% margin: 0.40 ÷ 0.60 = 66.7% markup. The calculator does it instantly when you switch to “I know my target margin.”
What margin should a trade business target?
It varies by trade and overhead, but many solo trades aim for 30–50% gross margin on a job to cover overhead and leave real net profit. Know your loaded costs first (see the Labor Burden calculator), then set margin deliberately.