Free tool
Markup Calculator
Apply a markup percentage to job cost to get a selling price, and see the gross margin that markup actually delivers. Markup and margin are not interchangeable — this tool shows both sides of the number.
Result
Results updated.
| Price at your markup | 12,500$ |
|---|---|
| Margin that markup produces | 20.0% |
| Markup required for target margin | 33.3% |
| Price at target margin | 13,333$ |
Formula
- price = cost × (1 + markup)
- margin = markup ÷ (1 + markup)
- required markup = target margin ÷ (1 − target margin)
- price at target margin = cost ÷ (1 − target margin)
Assumptions
- Markup is applied to total job cost; margin is measured against the final selling price.
- These are gross figures before income tax.
What this does not cover
- Overhead recovery, owner salary, and financing costs belong in your cost basis before markup.
- A calculator cannot tell you what your market will bear.
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
Markup multiplies cost: price equals cost times (1 + markup). Margin divides profit by price, so a given markup always produces a smaller margin — a 25% markup yields a 20% margin. To hit a target margin you need the inverse: required markup equals target margin divided by (1 − target margin). The tool computes all four figures from the same cost basis so the relationship is visible.
Worked example: $10,000 cost, 25% markup, 25% target margin
- Price at markup = 10,000 × 1.25 = $12,500
- Margin produced = 0.25 ÷ 1.25 = 20.0%
- Markup required for 25% margin = 0.25 ÷ 0.75 = 33.3% → price = $13,333
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 the selling price. The same job has a higher markup number than margin number, always.
What markup should a contractor charge?
It must cover your overhead, warranty exposure, and target profit — that number comes from your own books, not a calculator. Use this tool to make sure the number you chose does what you think it does.
Where does Drevanto fit in pricing?
Drevanto keeps every estimate editable and pricing contractor-controlled. Rates and markups are yours; the software structures the estimate, it does not set your prices.
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.