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Contractor Profit Calculator: Markup vs. Margin
Type in your costs and the profit you want. This shows the price to charge, your profit in dollars, and your margin. Many contractors mix up markup and margin. This calculator shows both so the numbers on a bid match the money in the bank.
- Price to charge
- $0.00
- Gross profit
- $0.00
- Margin / Markup
- 0% / 0%
Planning math only. This is not a quote and not HomeTech cost data.
Now price every line of the job from local data. CostEstimator uses HomeTech’s pricing data for your area. Try it free for 2 days.
See CostEstimatorMarkup vs. margin in plain words
What is the difference?
Markup is profit as a percent of your cost. Margin is profit as a percent of your selling price. A 20% markup on a $10,000 job gives a $12,000 price, and your margin is 16.67%, not 20%.
I want a 20% margin. What markup do I need?
25%. Pick “Margin %” above and type 20. The calculator shows the price to charge.
Does this include taxes, overhead or permits?
Only what you type in. Put overhead, permits and anything else you pay for in “Other costs” so the profit shown is real.