Markup vs Margin Calculator
Convert markup to margin (and back) and price any job from the profit margin you want. Free calculator built for contractors and the trades.
Want the full version? The Contractor Pricing Calculator ($4) prices complete jobs from a price book, prints a client-ready quote, and tracks your real profit. Excel + Google Sheets.
See it on Etsy →Markup and margin are not the same number
Markup is a percentage of your cost. Margin is a percentage of your price. If a job costs you $1,000 and you add a 35% markup, you charge $1,350 and keep $350. That $350 is only 26% of the price, so your margin is 26%, not 35%.
Why it matters for contractors
Overhead (insurance, the truck, fuel, phone, software, advertising) is usually figured as a percentage of sales. If you add your overhead % and profit % on top of cost as a markup, you'll come up short on every single job. The fix is to price backwards from margin: price = cost ÷ (1 − margin).
Quick conversion table
| Markup | Real margin |
|---|---|
| 20% | 16.7% |
| 25% | 20.0% |
| 35% | 25.9% |
| 50% | 33.3% |
| 100% | 50.0% |
FAQ
Is a 50% markup a 50% margin?
No. A 50% markup is a 33.3% margin. To earn a 50% margin you need a 100% markup.
What margin should a contractor aim for?
Many small trade businesses target 15–25% net profit after paying labor, materials and overhead. Your gross margin (before overhead) has to be higher than that.