Free contractor tool
Contractor Markup Calculator
Enter your job cost and target markup to instantly see your selling price, profit amount, and gross margin. Free — no sign-up required.
Total cost to you: materials, labor, subs, equipment
Most residential contractors use 20–35%
Selling price
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Markup amount
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Gross margin
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Markup quick reference
Selling price and gross margin at common markup percentages for your job cost. Enter your cost above to personalize this table.
| Markup % | Selling price | Profit | Gross margin |
|---|---|---|---|
| 15% | 1.15× cost | +15% of cost | 13.0% |
| 20% | 1.20× cost | +20% of cost | 16.7% |
| 25% | 1.25× cost | +25% of cost | 20.0% |
| 30% | 1.30× cost | +30% of cost | 23.1% |
| 35% | 1.35× cost | +35% of cost | 25.9% |
| 40% | 1.40× cost | +40% of cost | 28.6% |
| 50% | 1.50× cost | +50% of cost | 33.3% |
Markup vs. margin — what's the difference?
These two terms are often used interchangeably on job sites, but they calculate profit differently — and confusing them is one of the most common reasons contractors underprice their work.
Markup
Profit ÷ Cost × 100
Markup is based on your cost. A 30% markup means you add 30% of your cost on top. This is what most contractors use when quoting a job.
Gross margin
Profit ÷ Selling price × 100
Margin is based on your selling price. Your accountant and financial software report margin — it's always a lower percentage than the same markup.
The bottom line
A 30% markup is only a 23.1% gross margin. If your target is 30% margin, you need a 43% markup. Most contractors target markup — just make sure everyone on your team is using the same definition.
SwiftBid applies your markup automatically
Enter your scope and markup once — SwiftBid generates a complete estimate with organized sections, line items, assumptions, and exclusions, then builds a branded proposal PDF ready to send. First estimate free, no credit card required.
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