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    Profit Margin Calculator

    Enter your job cost and the profit margin you want to keep. See the selling price you need, the profit, and the markup that gets you there. Then download or print a clean summary.

    • Live results
    • Margin vs markup
    • PDF summary

    Your job

    Cost and target margin

    Add your cost and the share of the price you want to keep as profit.

    Target margin must be below 100%.

    Pricing a job with markup instead? Try the markup calculator.

    Your price

    Selling price and profit

    Updates as you type.

    Selling price
    $0.00
    Profit
    $0.00
    Markup needed
    0.00%
    Where the selling price goes
    Your cost–Your profit–
    Margin to markup ladder
    Job cost$0.00
    Profit$0.00
    Selling price$0.00
    Enter a job cost and a margin to see the price and the markup you need.
    Use this in my estimate
    Ready to price a real job?Build a full estimate in QuickEstimate with margin, overhead and markup applied automatically.
    Build a full estimate

    What Is Profit Margin?

    Profit margin is the percentage of your selling price that is profit — not the percentage of your cost. If a job sells for $12,500 and costs $10,000, your $2,500 profit is a 20% margin, because it's 20% of the $12,500 selling price.

    How Contractors Calculate Profit Margin

    Most contractors don't start with a margin and check it afterward — they start with a target margin and work forward to find the selling price that produces it:

    Selling Price
    Job Cost ÷ (1 − Target Margin %)

    Once you have the selling price, profit is simply Selling Price − Job Cost — the calculator above shows both, along with a margin confirmation so you can see it's calculated correctly.

    Margin vs Markup

    Margin and markup are easy to confuse, but they measure different things. Margin is profit divided by selling price. Markup is profit divided by cost. Because the selling price is always larger than the cost, margin is always a smaller number than markup for the same profit — a 20% target margin actually requires a 25% markup on cost, not 20%.

    Calculating margin from cost instead of selling price is one of the most common — and costly — pricing mistakes contractors make. It quietly overstates how much profit a job is really keeping.

    Worked Example

    Using a $10,000 job cost with a 20% target margin:

    $10,000 job cost @ 20% target margin
    Job Cost$10,000.00
    Selling Price ($10,000 ÷ 0.80)$12,500.00
    Profit$2,500.00
    Actual Margin ($2,500 ÷ $12,500)20.00%

    The margin is confirmed against the selling price ($12,500), not the cost ($10,000) — that's what keeps the math honest and matches the target margin you actually set.

    How Margin Fits Into a Construction Estimate

    Margin doesn't automatically account for your overhead — rent, insurance, equipment, admin costs — unless you build those into the job cost yourself before setting your target margin. QuickEstimate applies your labor cost, overhead, and target margin automatically to every estimate, so you're not repeating this math by hand on every bid.

    • Start with your true labor cost — see the employee cost calculator
    • Add materials and overhead to get your real job cost
    • Set your target margin to arrive at a selling price that protects your profit

    Frequently Asked Questions

    Profit margin is the percentage of your selling price that is profit. It's calculated against your selling price, not your cost — so a $2,500 profit on a $12,500 selling price is a 20% margin.
    Margin is profit divided by selling price. Markup is profit divided by cost. Because the selling price is always larger than the cost, margin is always a smaller percentage than markup on the same job — a 20% target margin actually requires a 25% markup on cost.
    Divide your profit (selling price minus cost) by your selling price, then multiply by 100. Most contractors instead start with a target margin and work forward to find the selling price that produces it — which is what this calculator does.
    Divide your job cost by (1 minus your target margin, expressed as a decimal). For example, a $10,000 job cost with a 20% target margin is $10,000 ÷ (1 − 0.20) = $12,500.
    No — this calculator applies your target margin to whatever job cost you enter. It does not automatically add overhead. If you want your margin to also cover overhead, add your overhead cost into the job cost before setting your target margin, or build your estimate in QuickEstimate, which applies overhead and margin automatically.
    Margin is always calculated from selling price, never from cost. Calculating it from cost is actually markup, not margin — mixing the two up is one of the most common pricing mistakes contractors make.
    Yes, the Profit Margin Calculator is completely free, requires no signup, and works entirely in your browser — nothing you enter is sent to a server.