PRICE WITH CONFIDENCE
Know your markup. Protect your margin.
Calculate contractor markup, profit margin, and selling price from your job costs. See how discounts change profit with this free calculator. No signup required.
01Your pricing inputs
Include all costs you want this price to cover. Profit is before omitted expenses and income tax; sales tax is excluded.
What a discount really costs
| Discount | Selling price | Profit | Margin |
|---|---|---|---|
| 0% | $1,250.00 | $250.00 | 20.0% |
| 5% | $1,187.50 | $187.50 | 15.8% |
| 10% | $1,125.00 | $125.00 | 11.1% |
| 15% | $1,062.50 | $62.50 | 5.9% |
| 20% | $1,000.00 | $0.00 | 0.0% |
HOW IT WORKS
Markup & margin calculator
Markup is profit divided by cost. Margin is profit divided by selling price. To price for a target margin, divide included job cost by one minus the margin as a decimal. To apply markup, multiply cost by one plus the markup as a decimal.
- 01Add the costs you want the price to cover, including the relevant labor and materials.
- 02Choose whether to calculate from markup, a target margin, or a known selling price.
- 03Enter any planned discount and compare the resulting price, profit, margin, and markup.
- 04Use the discount comparison to check how much profit a lower price gives up.
A WORKED EXAMPLE
Why 25% markup is only 20% margin
If your included cost is $1,000 and you add 25% markup, you charge $1,250. The $250 profit is 25% of cost but only 20% of the selling price. A 10% discount reduces the sale to $1,125 and profit to $125: half the original profit. These are illustrative figures, not a recommended contractor margin.
Questions, answered.
How do I calculate a selling price from a target margin?
Selling price equals included cost divided by (1 minus target margin). For example, $1,000 divided by 0.75 is $1,333.33 for a 25% target margin, before discounts and tax. Enter percentages as percentages in the calculator; it converts them to decimals.
How do I convert markup to margin?
Divide markup by one plus markup, using decimals, then multiply by 100. A 50% markup gives a 33.33% margin. To convert margin to markup, divide margin by one minus margin. The calculator shows both so the percentages are not confused.
Which contractor costs should I enter?
Include the labor, materials, equipment, subcontractors, and other costs you want to cover. Include employment burden and allocated overhead if you want to price for those too. Do not enter the same expense twice. The profit result is only after the costs you supply.
Does this calculate net profit or include sales tax?
It calculates the difference between selling price and included costs. It does not assume company-wide expenses or income taxes and does not add sales tax. Use the estimate builder to show separately entered sales tax on a customer proposal.
What happens when cost or price is zero?
A zero cost has no meaningful markup percentage; a zero selling price has no meaningful margin percentage. Those results display a dash instead of infinity. A selling price below included cost produces a visible loss, not a hidden zero.
WHEN THE JOB MOVES FORWARD
Keep your customers, work, and follow-up together.
Explore how CrewBrix connects the next steps. Your free-tool draft stays in your browser; it is not automatically imported into an account.