Labor + materials + subs
$
% of selling price that's profit
%
Your Numbers
—
Selling Price
—
Gross Profit
—
Markup %
What you're charging the customer
$
Labor + materials + subs
$
Your Numbers
—
Gross Margin %
—
Gross Profit
—
Markup %
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%.
Profit = $400. Margin = $400 ÷ $1,400 = 28.6% — not 40%.
Skip the Math on Every Job
Our Flat Rate Price Books have 1,410+ pre-priced services with your markup and margin built in automatically — for HVAC, electrical, plumbing, and more.