Free Tool
Markup vs Margin Calculator
Markup and margin aren't the same thing — and confusing them quietly kills profit. Enter your cost and markup to see the price to charge and your real margin.
$1,500
Price to charge
33.3%
Profit margin
$500
Profit per job
50.0%
Markup
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What's the difference between markup and margin?
Markup is profit as a percentage of your cost; margin is profit as a percentage of the price. A 50% markup is only a 33% margin — confusing them is a common way contractors underprice.
What markup should contractors use?
It depends on overhead and target margin, but many trades mark up materials and labor 40–100%+. Use the calculator to back into the margin you actually need.