Tool 01 · Price

Contractor Markup & Margin Calculator

Turn a complete job cost into a quote using either markup or a target gross margin—and see why the percentages are not interchangeable.

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  • Local calculation
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DecisionWhat must I charge to protect the margin I want?

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Enter your numbers

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Your result

Quote price$16,666.67
Gross profit
$4,166.67
Gross margin
25%
Equivalent markup
33.3%

Planning estimate based only on the values above. Inputs remain in this browser and are not submitted.

Method

How the calculation works

  1. Quote price = job cost ÷ (1 − target margin)
  2. Equivalent markup = gross profit ÷ job cost
  3. Gross margin = gross profit ÷ quote price

Worked example

$12,500 of complete cost at a 25% target margin requires a $16,666.67 price. The $4,166.67 difference is 33.33% markup on cost, but 25% margin on price.

Read the full methodology

Know the boundary

What this estimate does not decide

  • Gross profit is not final net profit if costs are missing.
  • Taxes, financing, retainage, warranty exposure, and contract terms are not added automatically.

Questions

Markup & margin FAQ

Is 25% markup the same as 25% margin?

No. A 25% markup produces a 20% margin. A 25% target margin requires a 33.33% markup.

Should overhead be in job cost?

Include the overhead allocation this quote is meant to recover, but do not count the same cost twice.