FREE ONLINE ESTIMATOR
Free contractor margin & markup calculator
Calculate your job selling price, target gross margin and required markup for contractor estimates.
LIVE CALCULATOR · FREE
Margin & markup
Enter your job cost and desired gross margin. The selling price recalculates instantly.
INSTANT COST BREAKDOWN
Suggested selling price$16,666.67USD · before any applicable sales tax
Direct cost$12,500.00
Selling price$16,666.67
Gross profit$4,166.67
Required markup33.3%
Planning estimates only. Confirm your own costs, contract terms, taxes, and required profit.
EXPLAINED
How to use this calculator
What’s the difference between margin and markup?
Markup is profit divided by cost. Gross margin is gross profit divided by selling price. A 25% margin requires a 33.3% markup, not 25%.
The formula
Selling price = total job cost ÷ (1 − target gross margin). For a $12,500 job at a 25% target margin, the selling price is $16,666.67.
What belongs in job cost?
Include materials, loaded labor, equipment, subcontractors and any other direct project costs. Understand how your business allocates overhead before using a target margin.
These are general estimating aids, not industry standards or professional advice. Check your actual rates and contract.