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Markup & Margin Calculator for Contractors & Trades Businesses

Convert Between Markup Percentage and Profit Margin — Know What You Actually Keep

Free markup and margin calculator built for contractors, electricians, plumbers, and trades business owners. Enter your job cost and desired markup percentage or profit margin to instantly see the selling price, gross profit, and the conversion between markup and margin. Understand why a 50% markup is only a 33% margin and why confusing the two costs small businesses thousands of dollars per year.

Includes a breakeven analysis showing the minimum number of jobs per month needed to cover overhead, and a profit target calculator that works backward from your desired annual income to the markup you need to charge. Designed for sole proprietors and small shop owners who price jobs by feel and need to get the math right.

Pro Tip: Most contractors undercharge because they confuse markup with margin. If you want to keep 30% of every dollar after job costs, you need a 43% markup, not 30%. A 30% markup only leaves you 23% margin. On a $50,000 job, that misunderstanding costs you $3,500 in profit. Use this calculator before you send the next quote.

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Markup vs Margin Calculator
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How It Works

  1. Enter Your Job Cost

    Add up all direct costs for the job: materials, labor (including burden), subcontractors, permits, equipment rental, and any other costs directly attributable to this project. This is your total job cost before any profit.

  2. Choose Markup or Margin

    Enter either your desired markup percentage or your target profit margin. The calculator instantly converts between the two and shows you the selling price. Markup is calculated on cost. Margin is calculated on selling price. They are not the same number.

  3. Review Selling Price and Profit

    See the calculated selling price, gross profit in dollars, and the equivalent margin or markup. Verify that the selling price is competitive for your market. If not, adjust your markup or look for cost reductions.

  4. Run the Breakeven Analysis

    Enter your monthly overhead (rent, insurance, truck payments, phone, software, etc.) and the calculator shows how many jobs at your current margin you need per month to break even. This is the minimum volume to keep the lights on.

  5. Set a Profit Target

    Enter your desired annual take-home income. The calculator works backward to show the total revenue needed, the number of jobs at your average size, and the minimum markup required to hit your target after overhead.

Built For

  • Electrical contractors calculating job quotes that cover materials, labor, overhead, and a real profit margin
  • Plumbing shop owners converting between markup and margin to understand what they actually keep from each job
  • HVAC installers pricing equipment changeout jobs with materials, labor, and overhead factored correctly
  • General contractors verifying that subcontractor markups on change orders are reasonable
  • Small trades businesses setting pricing policies based on a target annual income and known overhead costs
  • New contractors who have been pricing jobs by gut feel and want to establish a data-driven pricing system

Features & Capabilities

Markup to Margin Converter

Instantly convert any markup percentage to the equivalent profit margin and vice versa. See the formula and understand why 50% markup equals 33.3% margin, 100% markup equals 50% margin, and 20% markup equals only 16.7% margin.

Selling Price Calculator

Enter job cost and markup (or margin) to get the selling price. Shows gross profit in dollars and cents. Compare multiple markup levels side by side to find the sweet spot between competitiveness and profitability.

Breakeven Analysis

Enter your monthly overhead and the calculator determines how many jobs at your current pricing you need per month just to cover fixed costs. If you need 8 jobs per month to break even and you only close 6, you know your pricing or volume needs to change.

Profit Target Calculator

Enter your desired annual income, average job size, and overhead. The calculator works backward to determine the minimum markup required and the number of jobs per year needed to hit your target. Puts a real number on what your pricing needs to be.

Markup vs Margin Comparison Table

A reference table showing common markup percentages and their equivalent margins. Covers the full range from 10% to 200% markup. Eliminates the guesswork that costs contractors money on every job they quote.

PDF Export

Export your pricing analysis as a branded PDF for internal reference, business planning, or discussions with partners and accountants.

Frequently Asked Questions

Markup is the percentage added to cost to get the selling price. Margin is the percentage of the selling price that is profit. If a job costs $1,000 and you sell it for $1,500, the markup is 50% (500/1000) but the margin is only 33.3% (500/1500). They describe the same dollar amount of profit but as a percentage of different bases. This distinction matters because most people think of profit as a percentage of revenue (margin), but many pricing formulas use markup on cost.
Most successful trades businesses use markups of 35-65% on direct job costs, which translates to 26-39% gross margin. The exact number depends on your overhead, volume, market, and desired income. A sole proprietor with low overhead can survive at 30% markup. A shop with employees, trucks, and a warehouse typically needs 50-65% markup to cover overhead and make a profit. Use the profit target calculator to find your specific number.
The number one reason is pricing jobs below true cost. Most contractors know their material and labor costs but underestimate overhead. When you forget to include truck payments, insurance, tool replacement, callbacks, unbillable hours, and your own health insurance, a job that looks profitable on paper actually loses money. The second reason is confusing markup with margin and leaving 5-10% on the table on every job.
Most contractors use a base markup (their minimum to cover overhead and profit) and adjust upward for difficulty, risk, timeline pressure, and customer type. A routine service call might get your standard 50% markup. A complex renovation with unknowns might get 65-75%. Emergency and after-hours work should carry a premium. The key is that your base markup must cover overhead at your expected volume.

Learn More

Productivity & Scheduling

Markup, Margin, and Hourly Rates for Trades Businesses

How to price trades work profitably. Covers the difference between markup and margin, burden rate calculation, overhead recovery, billing rate setting, and profit target planning for contractors.

Read Guide →

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