Margin vs Markup Calculator

Margin and markup are not the same thing, and confusing them is one of the fastest ways to leak profit on every job. Use this calculator to convert between the two and price jobs correctly.

Margin vs markup explained

Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. A 50% markup is only a 33% margin — the gap is where contractor profit disappears.

Conversion table for contractors

A 20% margin needs a 25% markup. A 30% margin needs ~43% markup. A 40% margin needs ~67% markup. Use this calculator to translate between target margin and the markup your team must apply.

Pair with hourly rate and estimate tools

Combine the margin calculator with the EstiDash hourly rate tool and project estimator to build bids that actually deliver the profit you planned for.