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.
Total labor costs including wages and benefits
All materials, supplies, and equipment rental
Typical contractor markup: 20-50%
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. With job costing, expense tracking, and invoicing built in, you'll have the data you need to set the right markup every time.
Most contractors use a markup between 20-50%, depending on the trade and project type. General contractors typically mark up 25-35%, while specialty contractors like HVAC or electrical may use 30-50%. The right markup should cover your overhead costs and leave room for profit.
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.
Many contractors use different markups for labor and materials. Labor often carries a higher markup (30-50%) because it reflects your expertise, while materials may have a lower markup (15-25%). This calculator lets you combine them and apply one overall markup.
Your markup should cover all overhead costs (insurance, vehicle, tools, office, marketing) plus your desired profit. If your profit margin after overhead is below 10%, your markup is likely too low. Use this calculator alongside our Contractor Profit Calculator to verify.
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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