Contractor Markup vs. Margin Calculator

Convert between markup and margin, and calculate selling price, cost, and profit for your contracting projects.

Project Cost & Percentage

Formulas Used

From Markup:

  • Selling Price = Cost × (1 + Markup% ÷ 100)
  • Profit = Selling Price − Cost
  • Margin% = (Profit ÷ Selling Price) × 100

From Margin:

  • Selling Price = Cost ÷ (1 − Margin% ÷ 100)
  • Profit = Selling Price − Cost
  • Markup% = (Profit ÷ Cost) × 100

Conversion shortcuts:

  • Margin% = Markup% ÷ (1 + Markup% ÷ 100) × 100
  • Markup% = Margin% ÷ (1 − Margin% ÷ 100) × 100

Assumptions & References

  • Cost includes all direct costs: labor, materials, subcontractors, equipment, and permits.
  • Markup is applied to cost and must be ≥ 0%. There is no upper mathematical limit, but typical contractor markups range from 10%–50%.
  • Margin must be between 0% and 100% (exclusive). A 100% margin would require infinite selling price.
  • Overhead and profit (O&P) in insurance restoration work commonly uses 10% overhead + 10% profit, equating to a ~20% markup on net cost.
  • Gross margin (used here) differs from net margin, which would subtract additional overhead from profit.
  • Reference: Construction Financial Management Association (CFMA) — Financial Benchmarker; Craftsman Book Company — Contractor's Pricing Guide.

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