Markup Calculator

Discover what to charge and find your margin based on your markup percentage.

Project cost ($)

Markup percentage (%)

To quickly translate supplier or subcontractor costs into customer pricing, use our markup calculator. It converts your cost and markup percentage into a sale price, showing you the amount of profit and your profit margin.You should always show customers a single price, not a cost-plus breakdown. Itemized markups invite negotiation.Track the profitability of each individual project or the company as a whole with Houzz Pro’s Financial Reporting tool. Detailed comparisons of project budget and actual costs allow you to see each job’s profitability at a glance. Other financial reports provide high-level information that allows you to make better-informed business decisions.

How to calculate markup for construction costs

When you know your costs for a project, this markup calculator will help you quickly determine your selling price.Typical construction material markups are 15-25% for residential work. Markup for subcontractors is usually 10-15% to cover coordination and overhead.Markup is calculated by multiplying the cost by the markup percentage. The markup amount is then added to the cost to determine the selling price.

Selling price = Cost + (Cost x Markup)

For example, a 10% markup on materials that cost $5,000 is $500. Your selling price would be $5,500 ($5,000 + $500).Here’s an example to show how the calculator performs the markup calculation:

Project cost: $10,000
Markup: 25%
Customer price: $12,500
Profit: $2,500
Profit margin: 20%

Notice that the markup and profit margin are not the same.

What’s the difference between markup and profit margin?

Markup is a percentage added to a project's cost to cover expenses and profit.Profit margin is the percentage of the selling price that is profit. It indicates how efficiently a business converts revenue into profit and is included in financial reports as an indicator of the company’s health.Profit margin is calculated by dividing the profit on a material or project by the sales price. In the example above, $2,500 is divided by $12,500 to get 0.20 or 20% profit margin.Houzz Pro’s Profit Margin Calculator can help you determine what to charge for work based on your costs and target profit margin.

Markup Calculator

How to calculate markup for construction costs

What’s the difference between markup and profit margin?

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