Margin is profit as a share of the selling price; markup is profit as a share of the cost. A job that costs 800 and sells for 1,000 makes 200 profit: a 20% margin (200 ÷ 1,000) and a 25% markup (200 ÷ 800). To price for a 20% margin, divide the cost by 0.80, not multiply it by 1.20.
My Construction Calculator
Margin Calculator
Inputs
Results update as you type.
Diagram updates as you type.
Results
Check the working before you order.
Gross margin
20%
Markup
25 %
Profit
200
Price This optional: add your own prices
Your prices are remembered on this device only.
Send Order WhatsApp, SMS or email to your supplier
Scan to open this calculationThe code links to this calculator with your inputs, so anyone can scan it with a phone camera and see the same result. Save it for a report, a site board or WhatsApp.Test copy: this code opens the live site, myconstructioncalculator.com, so it works on a phone once the site is launched.
Results are estimates for planning and material ordering only. They are not a substitute for structural design or approval by a qualified engineer. Read the full disclaimer.
Scan to open this calculation with the same inputs.
Generated with myconstructioncalculator.com. Estimates for planning and ordering only; verify against drawings and specifications.
Formula
Profit = price − costMargin = profit ÷ price × 100Markup = profit ÷ cost × 100Price for a margin = cost ÷ (1 − margin)Price for a markup = cost × (1 + markup)
Worked Example
Cost 800, selling price 1,000:
Profit = 1,000 − 800 = 200
Margin = 200 ÷ 1,000 = 20%
Markup = 200 ÷ 800 = 25%
Margin and Markup Equivalents
Margin
Markup
Price for a cost of 100
10%
11.11%
111.11
15%
17.65%
117.65
20%
25%
125
25%
33.33%
133.33
30%
42.86%
142.86
33.33%
50%
150
40%
66.67%
166.67
50%
100%
200
Frequently Asked Questions
What is the difference between margin and markup?
Both use the same profit, divided by different numbers. Margin = profit ÷ price; markup = profit ÷ cost. 800 cost and 1,000 price give a 20% margin and a 25% markup.
How do I price a job for a 20% margin?
Divide the cost by (1 − 0.20). A cost of 800 needs a price of 800 ÷ 0.80 = 1,000. Adding 20% to the cost gives only 960, a 16.7% margin.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). A 25% markup is 0.25 ÷ 1.25 = 20% margin; a 50% markup is a 33.3% margin.
Can a margin be over 100%?
No. The margin is a share of the price, so it is always below 100%. A markup can be any size: doubling the cost is a 100% markup and a 50% margin.
What markup do contractors use?
It varies with the trade, job size and market, so use your own overheads and target profit. Work out the margin you need first, then use this calculator to turn it into a markup on cost.
Embed This Calculator on Your Website
Free for any website: contractors, suppliers, blogs and schools. Paste this code where you want the calculator to appear. It works in WordPress (Custom HTML block), Wix, Squarespace and plain HTML.
