Contractor Profit Calculator
Work out a contractor's price and profit — markup on cost, profit, and margin on price, with the difference explained.
Markup and margin are the most confused pair in construction pricing — and the confusion costs money. This calculator shows both, from one job cost and one markup, with the difference spelled out.
A 20% markup is a 16.67% margin. If you price by margin, use the formula in the box.
Your results
Enter your measurements and press Calculate.
Quantities are rounded up to whole tiles, planks, boxes or bags, after the wastage allowance. Cost appears only when you enter a price.
Formula
All lengths are converted to a single unit before the calculation: 1 ft = 0.3048 m, 1 in = 25.4 mm, 1 ft² = 0.09290304 m², 1 yd² = 9 ft². Material quantities are rounded up — you cannot buy part of a tile, plank or bag.
How to use this calculator
- Enter the job cost (materials plus labour).
- Enter the markup percentage.
- Read the selling price, the profit and the margin.
Worked example
| Job cost | $20,000 |
|---|---|
| Markup | 20% |
| Selling price | $20,000 × 1.20 = $24,000 |
| Profit | $24,000 − $20,000 = $4,000 |
| Margin | $4,000 ÷ $24,000 = 16.67% |
Check it by hand: every step above uses the formula in the box. If your numbers match the example inputs but the calculator gives a different answer, please report it via the contact page.
Frequently asked questions
What is the difference between markup and margin?
Markup is a percentage of the COST: a 20% markup on a $20,000 job adds $4,000, making the price $24,000. Margin is a percentage of the PRICE: that $4,000 profit is 16.67% of the $24,000 price. They are different numbers for the same job — this calculator shows both.
What markup should a contractor use?
It varies by trade, risk and overhead — commonly 10–30%. The markup must cover overheads (office, insurance, vehicles) as well as profit. This calculator does the maths for any markup you enter.
How do I work backwards from a margin?
If you want a 20% margin, the markup is margin ÷ (1 − margin) = 25%. So a $20,000 job priced for a 20% margin sells for $25,000, not $24,000.
Are these figures a quote?
No. They are estimates built from your own numbers — not guaranteed quotes. Real pricing depends on the job, the market and the contractor.
Related calculators
Estimates only. Results are for planning. Measure twice, confirm box coverage and tile sizes on the packaging you buy, and follow the manufacturer's instructions. See the disclaimer.