Free contractor tool
Markup Calculator
Enter a job cost and choose markup on cost or gross margin on selling price. The calculator shows price and gross profit, with an optional sales-tax calculation using the rate and taxable base you enter.
These are example inputs, not recommended prices or a job assessment. Replace them with your own figures.
Your result
- Selling price before sales tax
- $125.00
- Gross profit before unentered costs
- $25.00
- Gross margin (%)
- 20%
- Markup (%)
- 25%
- Sales tax
- $0.00
- Price including entered sales tax
- $125.00
Tax starts off. Enter the rate and taxable base that apply to this job; the tool does not decide whether labor or materials are taxable. Gross profit is not net profit if overhead or other costs are missing.
Calculations stay in this browser. No signup or email is needed.
Markup and margin use different denominators
Markup = profit ÷ cost × 100. Gross margin = profit ÷ selling price × 100. If a job costs $100 and you add 25% markup, the pre-tax selling price is $125 and gross margin is 20%.
For a target margin, selling price = cost ÷ (1 - margin ÷ 100). A 25% margin on $100 of cost needs a price of about $133.33. Neither example is a recommended rate for your trade.
Include the costs you need the job to recover
A margin result is only as complete as the cost you enter. Decide where labor, materials, delivery, subcontractors and overhead belong in your own costing process. Do not count the same item twice.
Sales tax is off by default. The tool does not determine taxability or select a state rate. Enter the taxable portion and rate that actually apply; the tax collected is kept separate from the pre-tax gross profit.