Construction Project Markup & Profit Margin Calculator
Calculate your construction project's selling price, markup percentage, profit margin, and gross profit. Enter your total project costs and either a desired markup percentage or profit margin to see the full breakdown.
Formulas Used
Total Project Cost = Materials + Labor + Subcontractors + Overhead + Other Costs
Selling Price (from Markup %) = Total Cost × (1 + Markup% ÷ 100)
Selling Price (from Margin %) = Total Cost ÷ (1 − Margin% ÷ 100)
Gross Profit = Selling Price − Total Cost
Markup % = (Gross Profit ÷ Total Cost) × 100
Profit Margin % = (Gross Profit ÷ Selling Price) × 100
Cost-to-Price Ratio = (Total Cost ÷ Selling Price) × 100
Key distinction: Markup is calculated on cost; profit margin is calculated on revenue (selling price). A 20% markup equals a 16.67% profit margin.
Assumptions & References
- Reference: Construction Financial Management Association (CFMA) — Financial Management & Accounting for the Construction Industry.