Calculate your selling price based on costs and desired markup percentage
Free tool by ThePocketBoss — enter your labor and material costs, set your markup, and instantly see the selling price, markup amount, and equivalent profit margin. Confused about markup vs margin? Our markup vs margin calculator explains the difference.
Total labor costs including wages and benefits
All materials, supplies, and equipment rental
Use a percentage based on your own costs, overhead, risk, and target
Your markup isn't just profit — it needs to cover all the costs of running your business that aren't directly tied to a specific job:
Many contractors confuse markup and margin, which can lead to underpricing. Markup is based on your cost. Margin is based on the selling price. A 25% markup only gives you a 20% margin. A 50% markup gives you a 33% margin. Always know the difference to avoid leaving money on the table.
Need to dive deeper? Use our Markup vs Margin Calculator to see the exact relationship between any markup and margin percentage.
ThePocketBoss tracks your actual project costs, compares them to estimates, and helps you identify where you're losing money. Use the contractor profit calculator to check your overall margins, then leverage our contractor estimating software to build professional quotes with consistent markup applied to every job cost estimate.
There is no universal contractor markup. Choose a percentage using your complete direct costs, overhead allocation, scope risk, warranty exposure, market, taxes, and target return. This calculator models the percentage you enter; it does not recommend one.
Markup is the percentage added to your cost to determine selling price. Profit margin is the percentage of the selling price that is profit. For example, a 25% markup on $100 gives a $125 selling price, but the profit margin is 20% ($25/$125). Markup is always a higher number than margin for the same profit.
You may use different markups when labor and materials carry different overhead, handling, warranty, or risk. This calculator applies one combined markup, so verify that the result covers the cost categories in your own estimate.
Your price needs to account for direct costs, allocated overhead, risk, taxes where applicable, and your chosen return. Compare the result with your actual completed-job data and consult a qualified accounting or pricing adviser when needed.
Markup Amount = Total Cost x (Markup Percentage / 100). Selling Price = Total Cost + Markup Amount. For example, if your costs are $1,000 and you want a 30% markup: $1,000 x 0.30 = $300 markup, so your selling price is $1,300.
Stop guessing your markup. Track every expense, compare estimates to actuals, and improve your profitability with every project.
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