📊 Markup & Profit Calculator
Calculate selling price with proper overhead and profit margins. Understand the critical difference between markup and margin.
Markup vs. Margin
These are NOT the same thing:
| Term | Formula | Example |
|---|---|---|
| Markup | (Price - Cost) / Cost | $120 price, $100 cost = 20% markup |
| Margin | (Price - Cost) / Price | $120 price, $100 cost = 16.7% margin |
Common Mistake
Using margin when you mean markup (or vice versa) can cost you thousands. A 20% markup gives you 16.7% margin, not 20%.
The Formulas
Markup to Price
Selling Price = Cost × (1 + Markup %)
Margin to Price
Selling Price = Cost ÷ (1 - Margin %)
Industry Standard Markups
| Job Type | Typical Markup |
|---|---|
| Residential remodel | 35-50% |
| New residential | 20-35% |
| Commercial | 10-20% |
| Public works | 10-15% |
| T&M/Service work | 50-75% |
Building Your Price
- Direct Costs — Materials, labor, equipment, subs
- + Overhead Allocation — Office, insurance, vehicles
- + Profit — Your return on risk
- = Selling Price
Example Build-Up
| Component | Amount |
|---|---|
| Direct labor | $10,000 |
| Materials | $8,000 |
| Subcontractors | $5,000 |
| Equipment | $1,000 |
| Direct Costs | $24,000 |
| Overhead (15%) | $3,600 |
| Profit (10%) | $2,760 |
| Selling Price | $30,360 |