Free Tool
Markup or margin? Price the job right.
They're not the same number, and treating them like they are is how contractors quietly lose money on every job. Enter your cost and the margin you want, and get the price to charge — plus the markup it actually takes to get there.
Price to charge
$1,667
- Profit on the job
- $667
- Markup needed
- 66.7%
A 40% margin means a 67% markup on cost.
Markup vs. margin, in one line
Margin
Profit ÷ price. What percentage of the money you collected is profit.
Markup
Profit ÷ cost. How much you added on top of what the job cost you.
Price = Cost ÷ ( 1 − margin )
Price every job right, automatically.
JobStack builds estimates and invoices off your real costs and margins — no mental math on the tailgate. Launching soon.
Notify me at launchFrequently asked questions
What's the difference between markup and margin?
Margin is profit as a percentage of the price you charge. Markup is profit as a percentage of what the job cost you. They're never the same number: a 40% margin requires a roughly 67% markup. Confusing the two is the single most common way contractors underprice.
Why does mixing them up lose money?
If you want a 40% margin but apply a 40% markup, you've underpriced the job — on $1,000 of cost you'd charge $1,400 (a 29% margin) instead of the $1,667 a true 40% margin needs. Across a year of jobs, that gap is your profit.
What profit margin should a contractor aim for?
Gross margins of 30–50% are common in the trades, depending on overhead, materials, and how much is labor. Lower-overhead service work can support higher margins; material-heavy jobs often run lower. Use a number that covers your overhead and leaves real profit.
What's the formula?
Price = Cost ÷ (1 − margin). For a 40% margin on $1,000 of cost: 1000 ÷ (1 − 0.40) = $1,667. Markup % = profit ÷ cost.
More free tools: hourly rate calculator, estimate generator. This tool is for planning only and isn't financial advice.