Win the work
EstimatesSend quotes clients sign onlineMilestone billingGet paid in stagesPipelineTrack every deal to closeRenovate AIPhotorealistic room previewsRun the job
ContactsEvery client in one placeSchedule and tasksTimelines your crew followsJobsPhoto folders linked to clientsMedia LibraryEvery photo and file, found fastGrow and connect
StorefrontPro PlusSell finishes, get quote requestsProjectsHomeowners post, you bidTeam and activityRoles for the office and crewiOS and AndroidSoonComing soon to your phoneOne workspace, one flat price. Every feature above is included from $29.99 a month.- Pricing
- Guides
- Contact
- Blog
Markup and margin calculator for contractors.
Enter your cost and any one number you know. See the selling price, profit, markup, and margin instantly. Nothing is saved or sent.
Selling price
$13,000.00
Profit
$3,000.00
Markup
30.0%
Margin
23.1%
Markup versus margin, explained
Contractors mix up markup and margin all the time, and it costs real money. Markup is how much you add on top of your cost. Margin is how much of the final price is profit. Adding 30% to a $10,000 cost gives a $13,000 price, but only 23.1% of that price is profit.
The formulas are simple. Price with a markup is cost times one plus the markup. Price for a target margin is cost divided by one minus the margin. Markup is profit divided by cost, and margin is profit divided by price.
| Margin you want | Markup you need |
|---|---|
| 20% | 25.0% |
| 25% | 33.3% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100.0% |
Before you set a number, make sure it covers overhead such as insurance, vehicles, software, and your own time. A margin that looks healthy on a single job can still lose money across a year.
FAQ
Common questions
What is the difference between markup and margin?
Markup is profit as a percent of your cost. Margin is profit as a percent of the selling price. A job that costs $10,000 and sells for $13,000 has a 30% markup and a 23.1% margin.
How do I price a job for a 30% margin?
Divide your cost by 0.70. A $10,000 cost becomes a $14,286 price. Adding 30% markup to the cost would only give you a $13,000 price and a 23.1% margin.
What markup should a contractor charge?
It depends on your overhead, trade, and market. Many remodelers aim for a margin of 20% to 35% after overhead. Work backward from the margin you need, then check the markup that requires.
Why is my profit lower than my markup?
Because markup is measured against cost, and margin against price, the margin number is always smaller. Overhead, warranty work, and change orders you did not bill also reduce real profit.
Can I track cost and margin on each estimate?
Yes. Renovate stores unit cost and price for every line item, so you see cost and margin on an estimate before you send it.
Ready when you are
Know your margin on every estimate.
Renovate tracks cost and price on each line item, so you see profit before you send the quote.