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Markup vs margin for contractors
Markup is the percent added to cost to create sell price. Margin is profit divided by sell price. A 25% markup equals a 20% margin. Price line items with markup; manage the job with live margin including change orders.
Last updated: July 31, 2026
Quick conversion
Margin % = markup % ÷ (100 + markup %) × 100
Sell price = cost × (1 + markup % / 100)
Open markup calculator
How do I convert markup to margin?
Margin % = markup % ÷ (100 + markup %) × 100. Example: 25% markup ≈ 20% margin.
Which should I track on jobs?
Price with markup on line items, then watch live margin % on the whole job including approved change orders.
