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Contractor markup calculator

Enter your cost and markup to get the price to charge — plus your profit and true margin. The fastest way to stop confusing markup with margin.

$1,000.00

What the job costs you before profit.

Price by

30%

Markup is added on top of your cost. Most trades run 20–50%.

Charge the customer

$1,300.00

$300.00

profit

30%

markup

23.1%

margin

Markup is profit as a % of your cost; margin is profit as a % of the price. A 30% markup is only a 23.1% margin — mixing them up is how contractors quietly underprice.

Build priced estimates in the app

Markup vs. margin

price = cost × (1 + markup%) · margin% = profit ÷ price

Markup is measured against your cost; margin is measured against the price. That's why a 50% markup is only a 33% margin — and why pricing off the wrong one is one of the most common ways small contractors leave money on the table.

Markup & margin: FAQ

What is the difference between markup and margin?

Markup is profit as a percentage of your cost; margin is profit as a percentage of the price you charge. They are not the same: a 30% markup on a $1,000 cost gives a $1,300 price, which is only a 23% margin. Contractors who quote off "margin" but calculate "markup" (or vice versa) systematically underprice.

How much should a contractor mark up a job?

It varies by trade and job type. As a rough guide, many residential contractors use 20–30% for larger jobs and 30–50% (or more) for small repairs, where overhead per job is proportionally higher. Your right number covers overhead plus the profit you want — start from your costs, not a competitor’s price.

How do you calculate markup?

Price = cost × (1 + markup%). For a $1,000 cost at 30% markup: $1,000 × 1.30 = $1,300. Profit is $300, and the margin is $300 ÷ $1,300 = about 23%.

How can contractors apply consistent markup on every quote?

The reliable way is software that applies your markup and margin rules automatically when you build an estimate, so every quote is priced right without manual math. Hero365 builds priced estimates for you and keeps your markup consistent across jobs.

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