Contractor Markup & Profit Margin Calculator
Calculate markup percentage, profit margin, and selling price for contractor jobs. Enter your total job cost and either your desired markup or selling price.
All direct costs: labor, materials, subcontractors, equipment
Your overhead as a % of job cost (office, insurance, vehicles, etc.)
Choose one: enter Markup % OR Selling Price
Markup is applied on top of total cost (cost + overhead)
The price you charge the client
Sales tax applied to material portion of job cost
Used to calculate tax on materials only
Formulas Used
Overhead Cost = Job Cost × (Overhead Rate ÷ 100)
Material Tax = Job Cost × (Materials %) × (Tax Rate ÷ 100)
Total Cost = Job Cost + Overhead Cost + Material Tax
Selling Price = Total Cost × (1 + Markup ÷ 100)
Gross Profit ($) = Selling Price − Total Cost
Markup % = (Gross Profit ÷ Total Cost) × 100 → profit over cost
Profit Margin % = (Gross Profit ÷ Selling Price) × 100 → profit as share of revenue
Key distinction: A 25% markup yields a 20% margin. Markup is always higher than margin for the same dollar profit.
Assumptions & References
- Reference: Construction Financial Management Association (CFMA) — Financial Benchmarker.