🔨 Contractor Tools
Contractor Markup Calculator
Convert cost to sell price using markup percentage — and see the resulting gross margin.
Pricing details
Labor + materials + overhead
20% markup = 16.7% gross margin
Fill in the details and click calculate.
Frequently Asked Questions
What markup should a contractor charge?
Most remodeling contractors need 40–70% markup on job costs to reach a 25–35% gross margin after real overhead. The common 10–15% "rule of thumb" barely covers overhead, let alone profit.
How do I calculate markup from my target margin?
Markup = margin ÷ (1 − margin). For a 30% margin: 0.30 ÷ 0.70 = 43% markup. Dividing cost by (1 − margin) gets you the same sell price directly.
Should markup be the same on labor, materials, and subs?
Many contractors mark up labor highest (most risk), materials in the middle, and subcontractors 10–25% (they carry their own overhead). What matters is that the blended result hits your target margin.
More Free Tools for Contractors
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Materials Cost Calculator
Materials cost estimator with markup
Profit Margin Calculator
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Overhead Calculator
Your true overhead cost per project