Contractor Markup Calculator
Stop leaving money on the table. Understand the difference between markup and margin, calculate the right sell price, and see what top contractors in your trade charge.
Common mistake: A 30% "margin" is NOT the same as 30% markup. A 30% markup gives you 23% gross margin. Apply the wrong number and you underprice every job.
Calculate Price
Enter your job cost, choose a calculation mode, and hit Calculate.
Typical Markup & Margin by Trade
These are gross margin benchmarks — overhead and net profit are additional considerations.
| Trade | Markup Range | Gross Margin Range | Notes |
|---|---|---|---|
| General Contractor | 15%–50% | 13%–33% | Varies most by project size |
| Electrical | 20%–40% | 17%–29% | Adjust for local labor market |
| Plumbing | 20%–45% | 17%–31% | Adjust for local labor market |
| HVAC | 25%–50% | 20%–33% | Service work runs higher than new installs |
| Roofing | 20%–40% | 17%–29% | Adjust for local labor market |
| Painting | 30%–60% | 23%–38% | Low material cost → high % margin |
| Flooring | 25%–50% | 20%–33% | Adjust for local labor market |
| Windows & Doors | 20%–40% | 17%–29% | Adjust for local labor market |
| Solar / EV Charging | 15%–35% | 13%–26% | High ticket offsets lower % |
Frequently Asked Questions
What is the difference between markup and margin?
Markup is profit ÷ cost. Margin is profit ÷ sell price. A 30% markup on a $1,000 cost job gives a $1,300 sell price and $300 profit — but the gross margin is only 23%, not 30%. Confusing the two is one of the most common pricing mistakes in contracting.
What markup should a contractor charge?
Most trade contractors use 20–50% markup (17–33% gross margin) depending on trade, overhead, and competition. High-overhead trades like HVAC and painting typically run 30–60% markup. Start by knowing your total overhead cost and ensure your markup covers it before netting profit.
Why do contractors lose money even with a markup?
Three main reasons: (1) confusing markup % with margin %, (2) underestimating labor burden (FICA, workers' comp, insurance), and (3) scope creep on change orders without repricing. Use the contractor labor burden calculator to get your true labor cost before applying markup.
How do I mark up subcontractor costs?
General contractors typically apply 10–20% markup on subcontractor invoices to cover coordination overhead, payment risk, and warranty responsibility. Some GCs negotiate net cost directly and add a management fee. Either way, markup on subs should be part of every prime contract.
What gross margin do I need to cover overhead?
Track your total overhead (office, insurance, vehicles, admin salaries) as a percentage of revenue. If overhead is 20% of revenue, you need at least 20% gross margin just to break even — before owner pay or profit. Most profitable contractors target 30–40% gross margin to net 10–15% after overhead.
Price Right. Win More. Track Every Job.
SubcontractorHub helps contractors build accurate estimates, track job costs in real time, and protect margin from the first quote to final invoice.
Book a Free Demo