Free Tool
Markup vs. Margin Calculator
Find your selling price — or check your profit — in seconds. Built for contractors who want to stop undercharging.
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Markup ≠ Margin. Here's Why It Matters.
Markup is added on top of your cost. A 40% markup means you add 40¢ for every dollar you spent.
Margin is the percentage of your selling price that stays as profit. It's what you actually keep.
A 40% markup is only a 28.6% margin. Most contractors quote markup but need to think in margin to know if they're actually profitable.
Example: $1,000 job cost × 1.40 markup = $1,400 price. Profit = $400. Margin = $400 ÷ $1,400 = 28.6% — not 40%.
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