What goes into the result
- Direct job cost
- Markup, target margin, or selling price
- Optional presentation rounding
- Optional local label
Translate the percentage
Contractor Markup & Gross Margin Calculator
Convert direct cost and markup, target gross margin, or selling price without confusing two percentages that use different denominators.
Planning estimateFormula v1.0.0Reviewed July 31, 2026
Know the selling price, gross profit dollars, markup, and gross margin from the same cost basis.
Runs locallyYour result
A clear selling price starts here
Enter a cost and one pricing target. Valid edits recalculate automatically.
What comes back
- Selling price
- Gross profit dollars
- Markup percentage
- Gross margin percentage
- Markup-versus-margin dollar gap
Worked examples
Follow the denominator.
These are hypothetical teaching examples, not market-rate recommendations. Your result uses only the values you enter.
$100 cost + 50% markup
$100 × (1 + 0.50)
$150 price · 33.33% gross margin$100 cost at 40% margin
$100 ÷ (1 − 0.40)
$166.67 price · 66.67% markupIncluded in the math
- The cost amount you enter
- Cent-accurate half-up rounding
- A nearby target-margin sensitivity table
Not modeled unless entered
- Overhead unless it is already in the cost
- Taxes
- Market demand or competitor prices
- Any guarantee that a customer will accept the price
The formula can be right while the cost basis is wrong.
Using margin and markup as synonyms
Markup divides gross profit by cost. Gross margin divides it by selling price.
Calling gross profit net profit
This tool has not subtracted overhead, taxes, financing, or other indirect costs.
Starting with an incomplete cost
A correct margin formula cannot recover labor burden or overhead that never entered the cost basis.
Plain-language answers
Frequently asked
Is 40% markup the same as 40% gross margin?
No. A 40% markup on $100 gives a $140 price and 28.57% gross margin. A 40% gross margin requires a $166.67 price.
Does the calculator add tax?
No. The core result is pretax because taxability and rates vary. Use only user-entered tax logic in a separate workflow.