How it works
Use the result as a checked starting point.
Markup tells you how much you add to cost. Margin tells you what share of the selling price remains as gross profit. Confusing the two can quietly underprice every job.
Enter the complete job cost and the markup you plan to apply. ContractorCalc shows the customer price, gross profit dollars, and the resulting margin so you can compare bids on the same basis.
Selling price = cost × (1 + markup). Margin = profit ÷ selling price.
Estimating checks
- Include loaded labor—not just wage—in job cost.
- Keep overhead allocation consistent across estimates.
- Use margin to compare jobs with different contract values.
Common questions
Is 25% markup the same as 25% margin?
No. A 25% markup on $100 produces a $125 price and a 20% margin.
Should overhead be included in cost?
Yes, if you want the result to reflect the true cost of producing the work. Use a consistent allocation method.
Does this include tax?
No. Add sales or other applicable taxes according to your local rules and contract structure.