Markup is the percent added to cost to create sell price. Margin is profit divided by sell price. A 25% markup equals a 20% margin. Price line items with markup; manage the job with live margin including change orders.
Last updated: August 10, 2026
Margin % = markup % ÷ (100 + markup %) × 100
Sell price = cost × (1 + markup % / 100)
Example: $1,000 cost with 25% markup → $1,250 sell price → $250 profit → 20% margin.
Open markup calculator Open margin calculatorContractors often say “I need 30%” when they mean margin—but price the job with 30% markup. Those are not the same. Treating markup as margin underprices the work and quietly erodes profit before the first change order lands.
Build estimate line items with consistent markup, export a clean PDF, and lock the sent version so later revisions stay honest.
Approved change orders change both sold price and cost. Your live job margin should include them. Price extras with the same markup logic (or higher for disruption risk), then watch margin % on the whole job—not only the original bid.
Margin % = markup % ÷ (100 + markup %) × 100. Example: 25% markup ≈ 20% margin. A $100 cost with 25% markup sells for $125 and yields $25 profit (20% of sell price).
Price line items with markup, then watch live margin % on the whole job—including approved change orders. Markup builds the bid; margin tells you if the job is healthy.
Both use percentages, but they divide by different bases. Treating a 30% markup as a 30% margin understates required sell price and quietly erodes profit.
Usually yes for consistency, unless the extra work carries higher risk or disruption. Always recalculate live job margin after approved change orders land.