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Markup vs. margin — the mistake that quietly kills your profit
This is the single most expensive bit of math in the trades, and most people get it backwards. Markup is a percentage you add on top of your cost. Margin is your profit measured as a share of the price you actually charge. They are not the same number.
Say a job costs you $1,000. Add a 30% markup and you charge $1,300 — but your profit ($300) is only a 23% margin of that price. If you actually wanted to keep 30% of every dollar, you needed to charge about $1,429. That gap is real money, on every job, all year. The calculator above shows both numbers at once so you never confuse them again.
How to price a job the simple way
Total your real costs — materials, your labor (don’t work for free), and the overhead that job drags in like fuel, dump fees, and wear on the truck. Then decide whether you’re thinking in margin or markup, set your percentage, and read the price. Round up to a clean number. That’s it.
- Price by margin when you have a profit target you want to keep on every job (e.g. “I keep 30% of revenue”). Formula: price = cost ÷ (1 − margin).
- Price by markup when you think in terms of marking parts and labor up by a set amount. Formula: price = cost × (1 + markup).
There is no “correct” percentage — it depends on your trade, your area, and your overhead. The point is to choose it on purpose instead of pulling a round number out of the air at the kitchen table.
Use it for your trade
Pricing tips and a ready-to-send quote tool for each trade: Plumbing · HVAC · Electrician · Roofing · Painting · Pressure washing · Landscaping · Contractor · House cleaning.
Not sure what your labor line should be? Work out your number with the hourly rate calculator first, or price work by the foot with the square-foot pricing calculator. Need a paper-style estimate instead? Use the free estimate template — add your logo and save a PDF.
Frequently asked questions
What’s the difference between markup and margin?
Markup is added on top of your cost; margin is profit as a share of the final price. A 50% markup on a $100 cost is a $150 price — but only a 33% margin. This calculator shows both so you can’t mix them up.
What markup do most contractors use?
It varies by trade and region. Many small trades aim for 20–50% to cover overhead and leave real profit, but there’s no single right number. Test any figure here and see the price and profit instantly using your own costs.
How do I calculate what to charge?
Add material + labor + overhead for your total cost. By margin: cost ÷ (1 − margin). By markup: cost × (1 + markup). The calculator does both automatically.
Is it really free?
Yes — no signup, nothing uploaded. The optional email field just sends you a cheat sheet if you want it.
All figures are illustrative and for planning only — you set your own costs and prices. This is not financial or tax advice.