Calculate pricing for profitability
Markup vs Margin - These are NOT the same! Many contractors confuse them and lose money.
Markup: Percentage added to your cost.
Example: $100 cost + 50% markup = $150 selling price
Margin: Percentage of the selling price that's
profit.
Example: $150 selling price with 33% margin = $50 profit
Why it matters: A 50% markup equals only 33% margin! If you want 50% margin, you need 100% markup.
Industry standards:
• Small repairs/service: 50-100% markup (33-50% margin)
• Materials: 20-50% markup (17-33% margin)
• Labor: 40-60% markup (29-38% margin)
How to use: Enter your costs and desired markup or margin percentage. The calculator shows selling price, profit, and the relationship between markup and margin.