Calculate gross profit, net profit margins, and markup percentages for residential and commercial construction contractors.
📈 Contractor Profit Calculator
Selling Price
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Gross Profit
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Profit Margin
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💡 Pro Tip
Never forget to account for overhead. Your overhead includes rent, office supplies, software, insurance, and bookkeeping. If you don't calculate overhead, your 'profit' will be eaten up quickly.
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Frequently Asked Questions
Q: What is a good profit margin for contractors?
A healthy gross profit margin for residential remodelers is 30% to 40%. For specialty subcontractors, it should range from 20% to 30%, and for general contractors, 15% to 25%.
Q: How is markup different from profit margin?
Markup is the percentage added to the cost to find the selling price. Profit margin is the percentage of the selling price that is profit. A 50% markup equals a 33.3% profit margin.
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