Construction Markup Calculator
Stop guessing your pricing. Enter your cost, pick your target markup or margin, and see the exact selling price. The calculator shows both numbers side by side — because they're not the same.
Last updated: May 2026
Enter your cost and markup % to find the selling price
Result
Your 30% markup equals a 23.1% margin. If you meant to keep 30% as your profit margin, you need to charge $1,428.57 instead.
Quick Reference: Markup vs Margin
| Markup | Equals Margin | On $1,000 Cost |
|---|---|---|
| 10% | 9.1% | $1,100 |
| 15% | 13% | $1,150 |
| 20% | 16.7% | $1,200 |
| 25% | 20% | $1,250 |
| 30% | 23.1% | $1,300 |
| 35% | 25.9% | $1,350 |
| 40% | 28.6% | $1,400 |
| 50% | 33.3% | $1,500 |
| 60% | 37.5% | $1,600 |
| 75% | 42.9% | $1,750 |
| 100% | 50% | $2,000 |
How Markup and Margin Are Different
Markup is the percentage you add on top of your cost. Marginis the percentage of your selling price that's profit. The formulas use different denominators — and that's where contractors lose money.
A 30% markup on a $1,000 cost = $1,300 selling price. Your profit is $300. But $300 ÷ $1,300 = 23.1% margin, not 30%. If you wanted a true 30% margin, you'd need to charge $1,429.
The practical impact: a contractor doing $500K/year in revenue who confuses 30% markup with 30% margin leaves about $35,000 on the table annually. Use this calculator for every quote.
Rule of thumb: to convert markup to margin, divide markup by (1 + markup). A 50% markup = 50 ÷ 150 = 33.3% margin. To convert margin to markup, divide margin by (1 − margin). A 33% margin = 33 ÷ 67 = 49.3% markup.
Typical Markup by Trade (2026)
| Trade | Typical Markup | Typical Margin |
|---|---|---|
| HVAC | 20–30% | 17–23% |
| Plumbing | 25–35% | 20–26% |
| Electrical | 20–30% | 17–23% |
| Roofing | 25–40% | 20–29% |
| General Contractor | 10–20% | 9–17% |
| Landscaping | 30–50% | 23–33% |
Source: Projul 2026 Construction Profit Margin Benchmarks + Contractor Growth Network industry data. Ranges reflect residential work; commercial markup is typically lower.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added on top of your cost. Margin is the percentage of the selling price that is profit. A 30% markup on a $1,000 cost gives you a $1,300 selling price — but your margin is only 23.1% ($300 profit ÷ $1,300 price). If you wanted a 30% margin, you'd need to charge $1,429. The math is different because markup divides by cost, while margin divides by selling price.
What is a typical markup for HVAC contractors?
HVAC contractors typically use a 20–30% markup (17–23% margin) on equipment and materials. Labor is usually marked up separately at 25–40%. Emergency or after-hours service calls often carry a 50%+ markup. According to industry data, HVAC businesses targeting 20%+ net profit margins usually need gross markups of 30–50% to cover overhead, warranty callbacks, and slow seasons.
How do I calculate the selling price from a target margin?
Divide your cost by (1 minus your target margin as a decimal). For a 25% margin on a $1,000 cost: $1,000 ÷ 0.75 = $1,333.33. Your profit is $333.33, which is 25% of the $1,333 selling price. The common mistake is multiplying cost by 1.25 — that gives you a 20% margin, not 25%. Use the Margin → Price tab above to calculate it instantly.
What markup should a general contractor charge?
General contractors typically charge a 10–20% markup (9–17% margin) on the total project cost. This covers overhead like insurance, office expenses, project management, and supervision. Residential GCs on smaller jobs may go up to 25%. Commercial GCs on large projects sometimes work at 8–12% markup because the dollar volume is higher. Your markup should cover all overhead plus your target profit.
Why do contractors confuse markup and margin?
Because they sound similar and both involve percentages. The problem costs real money: a contractor who wants a 30% profit margin but applies a 30% markup instead is only making 23.1% margin. On a $100,000 job, that's nearly $7,000 in lost profit. The confusion is so common that trade publications and software companies (including JobTread and Projul) have written guides specifically about this topic.
Does a 30% markup mean 30% profit?
No. A 30% markup means you add 30% of your cost on top. If your cost is $1,000, you charge $1,300 and keep $300. But $300 is only 23.1% of $1,300 — your actual profit margin is 23.1%, not 30%. To get a true 30% profit margin on a $1,000 cost, you'd need to charge $1,429 (which is a 42.9% markup). Use the calculator above to see the exact numbers for your costs.
Need software to create professional estimates?
Best HVAC Estimating SoftwareCompare software costs for your team size
Software Cost CalculatorMarcus Webb
Lead Reviewer & Construction Tech Analyst
Marcus spent 8 years working with general contractors and trade businesses before focusing on construction technology. He has personally tested 30+ estimating and project management tools with real project data.
About Marcus →