Contractor Markup Calculator
Convert desired margin into the correct markup.
Enter your values
ⓘ Live results
Results
- Quote price
- $13,720.00
- Total cost with overhead
- $10,976.00
- Markup to apply
- 25%
- Gross profit
- $2,744.00
Working
- 1$10,976.00 / (1 - 20%) = $13,720.00
Quick answer
Markup and margin are not the same: a 33% markup gives a 25% margin. Price from margin, then convert to markup.
price = cost / (1 - margin); markup% = price/cost - 1
How to use the Contractor Markup Calculator
- 1Add materials and labour for the job.
- 2Apply your overhead percentage to cover fixed business costs.
- 3Divide by (1 - margin) to get the price, never multiply by the margin.
Worked example
Using the values the calculator loads with:
Inputs
- Materials4200 $
- Labour5600 $
- Overhead12 %
- Target margin20 %
Results
- Quote price$13,720.00
- Total cost with overhead$10,976.00
- Markup to apply25%
- Gross profit$2,744.00
- $10,976.00 / (1 - 20%) = $13,720.00
Frequently asked questions
Why not just add 20%?
Adding 20% to cost yields only a 16.7% margin — the classic contractor pricing mistake.
Typical residential margin?
15-25% gross for remodelling, higher for specialist trades.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.