Fieldpaid › Free tools › Markup Calculator
To mark up a job: multiply your cost by one plus the markup (a 50% markup on $1,000 is $1,500). Markup is measured against cost; margin is measured against price, so a 50% markup is only a 33% margin. Enter your cost below and the calculator shows the price, profit, and both percentages.
Markup Calculator
Enter your cost and a target markup or margin. See the price to charge, your gross profit, and both percentages — so you never confuse markup with margin again.
Your numbers
Price to charge
—What to quote the client at this markup
Gross profit
—
Margin
—
Markup
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Price every job for a healthy margin
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Markup vs margin — the mistake that costs the most
Markup is added on top of your cost. Margin is profit as a share of the final price. They sound interchangeable but produce different numbers, and confusing them is one of the quietest ways contractors lose money.
Example
Cost: $1,000 · 50% markup → Price $1,500 · Profit $500
Markup = $500 ÷ $1,000 = 50%
Margin = $500 ÷ $1,500 = 33.3%
If you think you are pricing for a 50% margin but actually apply a 50% markup, you are netting 33% — a third less than you planned, on every job, all year. To keep a true 50% margin you need a 100% markup. When in doubt, target margin, because margin is what ends up in your pocket.
Want to check a finished job rather than price a new one? Use the job profit calculator. For the full pricing method, read How to Price a Job as a Contractor.
Built into Fieldpaid
See your margin on every quote, before you send it.
Fieldpaid builds quotes from your QuickBooks prices and shows the margin as you go — then compares quoted margin to real margin once the invoice clears. No spreadsheet, no manual maths.
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Common questions
What is the difference between markup and margin?
Markup is profit measured against your cost; margin is profit measured against your price. A 50% markup on $1,000 of cost gives a $1,500 price and a 33% margin. They are always different numbers, and pricing to a markup when you meant a margin is one of the most common ways contractors underprice.
What markup should a contractor use?
A 1.5×–2× markup on direct cost (a 50%–100% markup) is common in the trades, producing roughly a 33%–50% gross margin. The right number depends on your overhead and local market — the goal is a price that covers materials, labor, business overhead, and real profit.
How do I convert margin to markup?
Markup = margin ÷ (1 − margin). For a 40% margin, markup = 0.40 ÷ 0.60 = 66.7%. To go the other way, margin = markup ÷ (1 + markup). This calculator does the conversion for you the moment you enter a number.