Contractor Markup Calculator
Convert desired margin into the correct markup.
Enter your values
Enter the materials in $.
Enter the labour in $.
Enter the overhead in %.
Enter the target margin in %.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Quote price
- $13,720.00
- Total cost with overhead
- $10,976.00
- Markup to apply
- 25%
- Gross profit
- $2,744.00
Working
- 1$10,976.00 / (1 - 20%) = $13,720.00
Quick answer
Markup and margin are not the same: a 33% markup gives a 25% margin. Price from margin, then convert to markup.
price = cost / (1 - margin); markup% = price/cost - 1
At a glance
| What it does | Convert desired margin into the correct markup. |
|---|---|
| Category | Business |
| Inputs needed | Materials, Labour, Overhead, Target margin |
| Main output | Quote price |
| Formula | price = cost / (1 - margin); markup% = price/cost - 1 |
| Cost | Free — no sign-up, no download |
How to use the Contractor Markup Calculator
- 1Add materials and labour for the job.
- 2Apply your overhead percentage to cover fixed business costs.
- 3Divide by (1 - margin) to get the price, never multiply by the margin.
Inputs explained
- Materials($)
- Enter the materials in $.
- Labour($)
- Enter the labour in $.
- Overhead(%)
- Enter the overhead in %.
- Target margin(%)
- Enter the target margin in %.
Worked example
Using the values the calculator loads with:
Inputs
- Materials4200 $
- Labour5600 $
- Overhead12 %
- Target margin20 %
Results
- Quote price$13,720.00
- Total cost with overhead$10,976.00
- Markup to apply25%
- Gross profit$2,744.00
- $10,976.00 / (1 - 20%) = $13,720.00
Frequently asked questions
Why not just add 20%?
Adding 20% to cost yields only a 16.7% margin — the classic contractor pricing mistake.
Typical residential margin?
15-25% gross for remodelling, higher for specialist trades.
What do I need to enter into the Contractor Markup Calculator?
Just 4 values: materials, labour, overhead, target margin. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Contractor Markup Calculator work out the answer?
Markup and margin are not the same: a 33% markup gives a 25% margin. Price from margin, then convert to markup. It applies the formula price = cost / (1 - margin); markup% = price/cost - 1 and shows the working so you can check each step by hand.
Is the Contractor Markup Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.