How do I convert margin to markup?

Markup = margin ÷ (1 − margin). A 32% margin needs about a 47% markup.

Should markup be the same on materials and labor?

Many contractors use different markups — often higher on labor and subs than on materials — as long as the blended result hits the target margin.

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Markup Calculator

Charging a 30% markup does not produce a 30% margin. Convert correctly here.

Your numbers

Job cost ($)

Target gross margin (%)

Results

Required markup: 47.1%
Price to charge: $22,059
Gross profit: $7,059
Multiplier: 1.471×

Planning estimate only — based on the inputs above and typical industry rates, not a quote or a guarantee. Verify against your own costs before pricing work.

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