How to use the Markup Calculator
- 1
Choose what you know: cost and markup, cost and target margin, or cost and selling price.
- 2
Enter your cost, including materials, labor and subcontractors.
- 3
Read the selling price, profit, markup and margin. Use the table to compare common markups.
Markup vs. margin
Markup is profit divided by cost. Margin is profit divided by the selling price. A job that costs $1,000 and sells for $1,500 has a 50% markup but only a 33.3% margin.
Margin is what pays your overhead. If your overhead runs at 25% of revenue and you add a 25% markup, your margin is only 20%, so you lose money on every job.
- Markup % = (price − cost) ÷ cost × 100
- Margin % = (price − cost) ÷ price × 100
- Price from markup = cost × (1 + markup)
- Price from margin = cost ÷ (1 − margin)
Typical markups for contractors
Residential remodelers and specialty trades commonly mark up job costs 35% to 50% (a 26% to 33% margin) to cover overhead and profit. Service and repair work is often priced higher because the jobs are smaller and overhead is spread across fewer hours.
Frequently asked questions
How do I calculate markup?
Subtract the cost from the selling price, divide by the cost and multiply by 100. $1,500 − $1,000 = $500; $500 ÷ $1,000 = 50% markup.
What markup gives a 30% margin?
A 42.9% markup. The formula is markup = margin ÷ (1 − margin).
Is markup or margin higher?
Markup is always higher than margin for the same price and cost, because it's divided by the smaller number.
What is a good markup?
One that covers your overhead and leaves the profit you want. Work out your overhead as a share of revenue, add your profit goal and convert that margin to a markup.
Is my data stored?
No. Everything is calculated in your browser.