Free tool
Margin Calculator
Enter what a job cost and what you charged to see gross profit dollars, true gross margin, and the equivalent markup. The honest check on whether a job actually made money.
Result
Results updated.
| Gross profit | 2,500$ |
|---|---|
| Gross margin | 20.0% |
| Equivalent markup | 25.0% |
Formula
- gross profit = price − cost
- margin = gross profit ÷ price
- equivalent markup = gross profit ÷ cost
Assumptions
- Margin is always measured against the selling price, never against cost.
- A negative result means the job lost money at the gross level.
What this does not cover
- Gross margin is not net profit — overhead, warranty, and callbacks come out of it.
- Comparing margins across jobs only works when the cost basis is counted the same way.
Planning aid only — not a quote. Quantities use documented rules of thumb; verify against your plans, local codes, site conditions, and real supplier pricing before ordering or bidding.
Methodology
Margin works backward from the sale: gross profit equals price minus cost; margin equals profit divided by price; the equivalent markup divides the same profit by cost. Because the denominators differ, margin and markup describe the same profit with different numbers — a $2,500 profit on a $12,500 price is a 20% margin but a 25% markup. A negative profit means the job lost money before overhead, and the tool says so plainly.
Worked example: $10,000 cost, $12,500 price
- Gross profit = 12,500 − 10,000 = $2,500
- Margin = 2,500 ÷ 12,500 = 20.0%
- Equivalent markup = 2,500 ÷ 10,000 = 25.0%
Frequently asked questions
Is gross margin the same as profit?
No. Gross margin is what remains after direct job costs. Overhead, office costs, insurance, and owner salary still come out of it before net profit.
Why is my margin smaller than my markup?
Margin divides by the (larger) selling price; markup divides by the (smaller) cost. They measure the same dollars against different bases.
What margin should a contracting business target?
Enough to cover overhead and leave net profit — the right number depends on your overhead structure and market. This tool verifies the math; the target is your business decision.
Certified benchmark · 2026-08-21
In 520 certified profile-mode generations across 26 supported Instant assemblies on Windows (profile/AOT) and an Android API 36 emulator, supported jobs became editable estimates in a median of 0.028 seconds (rounded); the measured 95th percentile was 48.008 milliseconds (approximately 0.048 seconds), with 0 generative-AI provider calls.
- median, supported jobs
- 0.028 sec
- certified generations
- 520
- supported assemblies
- 26
- failures · 0 AI provider calls
- 0
Certified supported jobs only. Editable output; contractor pricing and field verification remain in control. Full methodology and results
See it run on your own jobs
The private Drevanto beta is the real, editable product — not a website demo. Apply, and we will follow up by email.