This free markup calculator turns your job cost and markup percentage into the price to charge, your profit, and your true margin — instantly. It also shows the difference between markup and margin, the mix-up that quietly eats into contractor profits. Enter your numbers below.
New to pricing? Read Contractor Markup vs. Margin: How to Price Jobs to Actually Profit for the math behind these numbers.
Markup vs. Margin Calculator
| Markup | Margin |
|---|---|
| 10% | 9.1% |
| 15% | 13.0% |
| 20% | 16.7% |
| 25% | 20.0% |
| 30% | 23.1% |
| 40% | 28.6% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50.0% |
For planning and education only — not financial advice. Always confirm pricing against your own costs.
Markup is not margin — and the gap costs you money
Plenty of contractors price a job at “50% markup” thinking they’re keeping half. They’re not. A 50% markup on cost is only a 33% margin of the sale price. Mix the two up across a year of jobs and you can work flat-out while quietly underpricing every ticket. Enter your cost above, tell the calculator what you know — your markup, your target margin, or the price you want to charge — and it fills in the rest.
The formulas
Markup is profit measured against your cost: markup % = (price − cost) ÷ cost. Margin is profit measured against your price: margin % = (price − cost) ÷ price. Because the denominators differ, the same dollar of profit always shows a higher markup number than margin number. To hit a target margin, price = cost ÷ (1 − margin). To apply a markup, price = cost × (1 + markup).
Frequently asked questions
Is a 50% markup the same as a 50% margin?
No. A 50% markup gives you a 33.3% margin. To actually keep 50% of the sale price, you need a 100% markup.
How do I calculate markup?
Markup % = (price − cost) ÷ cost. If a job costs you $100 and you charge $150, that is a $50 markup on $100 of cost, or a 50% markup. To set your price from a markup, multiply cost by (1 + markup): $100 × 1.5 = $150.
How do you convert markup to margin?
Margin = markup ÷ (1 + markup). A 25% markup converts to a 20% margin, and a 50% markup converts to a 33.3% margin. The calculator above and the quick-reference table do this conversion for you.
Is markup calculated on cost or on price?
Markup is calculated against your cost; margin is calculated against the price you charge. That is why the same dollar of profit always shows a bigger markup percentage than margin percentage.
Which should I price from — markup or margin?
Price from margin. Margin is what is left on the invoice after costs, so targeting a margin protects your take-home no matter how big the job’s costs are.
What markup or margin should a contractor aim for?
It varies by trade and by what your overhead and labor actually cost — use our Break-Even Calculator and True Hourly Rate Calculator to find the number that covers your business, then price every job to clear it.
Related: True Hourly Rate Calculator · Break-Even Calculator · Estimate Template (Pro) — prices each line from cost + markup automatically.