Enter your costs and the margin you want, and this tells you exactly what to charge — and shows why markup and margin aren't the same number.
Your costs
What to charge
$3,120
Your cost
$1,337
Profit
43%
Markup
A 30% margin means marking your $3,120 cost up by 43%. Margin and markup are not the same number — this does the math so you don't underprice.
Build this into every estimate — free trialAdd up what the job actually costs you — materials, the labor hours at your real loaded rate, and a slice of overhead — then set the profit margin you want to keep. The calculator divides your cost by (1 − margin) to get a price that leaves that margin as profit. Charging cost plus your margin percentage (instead of dividing) is the classic mistake that quietly shrinks every job's profit.
The trap
A 30% markup is only about a 23% margin. If you want to keep 30%, you actually need to mark costs up by about 43%. Confusing the two is one of the most expensive mistakes in the trades.
What's the difference between markup and margin?
Markup is the percentage you add to your cost. Margin is the percentage of the final price you keep. A 50% markup is only a 33% margin. To keep a specific margin, divide your cost by (1 minus the margin) — which is exactly what this calculator does.
What's a good profit margin for a contractor?
Many contractors target a 20–35% net margin after materials and labor. Below that, you may only be covering overhead. The right number depends on your trade, market, and risk.
Should overhead be included in the price?
Yes. Overhead — insurance, fuel, tools, your phone, time spent quoting — is a real cost of doing business. If you don't build it into every job, your 'profit' is quietly paying for it instead.
Want to price like this on every job automatically? Read the full pricing guide or start a free trial.