Construction markup calculator
Enter job cost and markup percentage. See sale price, gross profit, and gross margin instantly.
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Start free for 30 daysHow this calculation works
Markup is the amount you add on top of cost to arrive at your sale price. It is not the same as margin. Margin is the profit as a percentage of sale price, while markup is the profit as a percentage of cost. Mixing them up is one of the most common reasons contractors under-price jobs.
Sale price = Cost × (1 + Markup%)
What to do with this number
Knowing the number is easy. Hitting it on every job is the hard part. Most contractors have zero visibility into actual job margin until the project is closed. Sledge tracks real-time job cost and margin as invoices come in, so you know whether you are hitting your markup before it is too late to adjust.
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Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of sale price. A 25% markup equals a 20% margin. Confusing the two is a fast way to underprice work.
What markup should a contractor use?
Most general contractors target 15-25% markup on materials and 30-50% on labor. The right number depends on your overhead, risk, and local market.
Does Sledge track margin automatically?
Yes. Sledge tracks live job cost and applies your markup and margin targets so you see variance in real time, not after the job is closed.
Can I use this calculator for commercial and residential?
The formula is the same. What varies is the markup you apply. Commercial work often has different margin expectations than residential.
Is this calculator free?
Yes. Use it as much as you need. Ready to automate job costing on every project, try Sledge free for 30 days.