What This Calculator Does
The contractor markup calculator converts your job cost into the sale price you should charge a client, based on the markup percentage you want to add. It also shows the resulting profit margin, since a markup percentage and a margin percentage are not the same figure — a common point of confusion that quietly erodes contractor profit.
Use it while pricing bids: know your full job cost (materials, labor, and overhead), pick a markup that fits your trade and market, and get the exact price to put on the proposal.
Markup vs. Margin — What Is the Difference?
Markup is the percentage you add on top of your cost to set the sale price: price = cost × (1 + markup%). Margin is the percentage of the final sale price that is profit: margin = profit ÷ price.
These numbers are always different, and margin is always lower than markup for the same job. A 50% markup produces only a 33% margin, not 50%. Contractors who confuse the two frequently underprice jobs — assuming a 30% markup delivers a 30% margin, when it actually delivers about 23%.
How Much Should Contractors Mark Up Jobs?
- General contracting: Typically 10–20% markup on subcontracted work, higher on self-performed labor.
- Specialty trades: Electricians, plumbers, and HVAC often run 30–50% markup on materials and labor combined.
- Design-build / custom work: Markups of 40–100% are common given design time, project management, and risk.
- Materials-only markup: Many contractors add a separate 15–25% markup just on materials to cover procurement and handling.
Your ideal markup depends on overhead, competition, project risk, and how much of the work you self-perform versus subcontract.
Frequently Asked Questions
What markup should a contractor use?
It varies by trade: general contractors often use 10-20% on subcontracted work, while specialty trades commonly use 30-50%. Your ideal markup depends on your overhead and market.
Is a 30% markup the same as a 30% profit margin?
No. A 30% markup on cost produces roughly a 23% profit margin. Margin is always lower than markup for the same numbers because margin is measured against the sale price, not the cost.
How do I convert markup to margin?
Margin = markup ÷ (100 + markup) × 100. For example, a 50% markup converts to a 33.3% margin.
Should materials and labor be marked up the same amount?
Not always. Many contractors apply a lighter markup to materials and a higher markup to labor and overhead-heavy line items.
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