What's the difference between margin and markup?

Margin is profit divided by price. Markup is profit divided by cost. A 30% margin requires roughly a 43% markup.

What margin should contractors target?

It varies by trade and market. Many contractors target 25–40% gross margin so overhead and net profit are both covered — check your own overhead rate before setting a number.

Free tools

Profit Margin Calculator

Enter your job cost and price to see true gross margin — and the markup needed to hit a target.

Your numbers

Job price ($)

Job cost ($)

Target gross margin (%)

Results

Gross profit: $6,500
Gross margin: 27.1%
Markup on cost: 37.1%
Price needed for 30% margin: $25,000

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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