Markup & Margin Calculator — Price Jobs Right
Most contractors undercharge because they think in markup when they should think in margin. Markup is what you add to cost; margin is what you keep. They're not the same number, and confusing them is how jobs pay for the materials and nothing else.
Enter your cost on a job and your target margin — this calculator tells you the exact price to charge, what your markup percentage is, and what you actually keep.
Total cost
$612
Your price
$857
Profit
$245
True margin
29%
Rule of thumb: a 40% markup ≈ 29% margin. If your margin is under 20%, you're effectively working for the overhead. Always price on margin, not markup.
The formula
Price = Cost ÷ (1 − target margin). A 33% margin is a 50% markup: a $1,000 cost priced at $1,500 keeps $500 — a third of the sale.
Pro tips
- →Run your numbers in margin, not markup — margin is the % you keep, markup is the % you add.
- →Include every cost: materials, labor, overhead, and 10% for the stuff you forgot.
- →If your margin feels thin after pricing, the job is priced wrong — not the calculator.
Frequently Asked Questions
What's the difference between markup and margin?+
Markup is the % added to cost; margin is the % of the final price you keep. 50% markup = 33% margin. Price in margin to know what you actually earn.
What markup should a contractor use?+
For materials, 30–50% markup is standard; labor should carry its own fully-loaded rate. Small jobs often need higher markup to cover overhead.
How do I calculate markup from margin?+
Markup % = margin ÷ (1 − margin). A 33% margin needs a 50% markup on cost.
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