Free Tool
Markup & Margin
Calculator
Know your numbers. Calculate markup, profit margin, and sell price instantly — so every job hits your profit target.
Pricing inputs
Change any field to recalculate markup, margin, profit, and sell price instantly.
Live calculation
Pricing results
Results update as soon as you edit cost, markup, margin, or sell price.
Sell Price
$125,000
Profit
$25,000
Markup
25.0%
Margin
20.0%
Cost vs. profitCost / Profit
Cost 80.0%
Profit 20.0%
Quick Reference: Markup to Margin
Common markup percentages and their equivalent profit margins.
| Markup % | Margin % | On $100K Cost |
|---|---|---|
| 10% | 9.1% | $110,000 |
| 15% | 13.0% | $115,000 |
| 20% | 16.7% | $120,000 |
| 25% | 20.0% | $125,000 |
| 33.3% | 25.0% | $133,333 |
| 42.9% | 30.0% | $142,857 |
| 50% | 33.3% | $150,000 |
Frequently Asked Questions
What's the difference between markup and margin?+
Markup is calculated as a percentage of cost: (Price - Cost) / Cost × 100. Margin is calculated as a percentage of the sell price: (Price - Cost) / Price × 100. A 25% markup equals a 20% profit margin.
What markup should contractors use?+
It varies by project type. Residential remodeling typically uses 35-50% markup (26-33% margin). New construction runs 15-25% markup. Commercial projects vary based on scale and risk.
Why do contractors confuse markup and margin?+
Because the percentages sound similar but mean different things. A 20% markup only yields a 16.7% profit margin — a gap that costs contractors thousands over a year of projects.
How do I calculate sell price from desired margin?+
Divide your cost by (1 - margin/100). For example, to achieve a 25% margin on a $100,000 job: $100,000 / (1 - 0.25) = $133,333 sell price.
Is this calculator free to use?+
Yes, this markup and margin calculator is completely free with no login required. For full estimating, invoicing, and profit tracking, check out BuilderMaxPro's plans.
Build Smarter Estimates
Use BuilderMaxPro to create professional estimates with built-in profit tracking, so every job meets your margin targets.