Calculate selling price based on your costs and desired gross profit margin using the contractor markup formula.
➕ Contractor Markup Calculator
Required Markup %
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Selling Price
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Estimated Profit
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💡 Pro Tip
Differentiate between hard costs (materials, subcontractors, permits) and soft costs (design fees, mobilization). Mark up both to cover risk and ensure proper job profitability.
Frequently Asked Questions
Q: How do you calculate contractor markup?
Formula: Markup Percentage = (Desired Profit Margin ÷ (100 - Desired Profit Margin)) × 100. Example: For a 30% margin, markup = (30/70) × 100 = 42.8%.
Q: What is standard contractor markup?
Standard residential construction markup ranges from 1.3 to 1.5 (adding 30% to 50% on top of total direct material and labor costs).
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