General Contractor Markup vs Margin Calculator
On a $50K renovation, confusing markup and margin can cost you $8,000+.
🔄 I Know My...
Enter a markup or margin and we'll calculate everything else.
💰 Job Cost
Your total cost on this general contracting job (labor + materials + overhead). Adjust to see real dollar impact.
Enter jobs per month to see the annual impact of confusing markup with margin.
⚡ The Real Difference
This is what happens when you confuse the two. Same percentage, very different results.
Quick Reference: Common Conversions
| Markup | Margin | $8000 Cost → Price |
|---|---|---|
| 20% | 16.7% | $0 |
| 25% | 20.0% | $0 |
| 33% | 25.0% | $0 |
| 43% | 30.0% | $0 |
| 50% | 33.3% | $0 |
| 67% | 40.0% | $0 |
| 100% | 50.0% | $0 |
| 150% | 60.0% | $0 |
Markup → Margin Conversion
$0
Your sell price
Adjust the inputs on the left to see your numbers update in real time.
📤 Share This Tool
Know someone who could use this? Send it their way.
📊 Want the full picture?
See what we install in your business
AI call handling, review automation, lead pipeline, and full back-office operations. Installed in 48 hours.
See the Growth System →No commitment. See exactly what gets installed and how it works.
Markup vs Margin for General Contracting Contractors
General contractors work with the biggest numbers in the trades. A bathroom remodel is $15,000. A kitchen reno is $40,000+. When you confuse markup and margin on those numbers, the dollars get painful fast.
This calculator converts between markup and margin for any project size. Plug in your total project cost and see both numbers. The difference on larger jobs is significant.
The Most Common Mistake
A GC bids a bathroom remodel at $8,000 cost with a 35% markup. He charges $10,800 and thinks he is making $2,800 at 35% profit. His actual margin is 25.9%. After project management time (40 hours at $50/hr effective cost), permits, and overhead, his net might be 8% to 10%. On $10,800, that is $864 to $1,080 for a 3 week project. That is not a business. That is a hobby.
General Contracting Example
Kitchen renovation: $35,000 total cost (subs, materials, your crew labor, permits). At 35% markup you charge $47,250 and keep $12,250 (25.9% margin). At 35% margin you charge $53,846 and keep $18,846. Per project difference: $6,596. You do 2 kitchens per month. That is $13,192 in monthly profit you are either making or not. Over a year: $158,000.
What We Recommend
GCs should price using margin, always. Target 20% to 30% net margin on renovations and 25% to 35% on custom builds. Add a separate line item for project management (10% to 15% of project cost). Do not bury PM time in your markup and hope it works out. Subs should be marked up 10% to 15% for coordination and warranty management.
Frequently Asked Questions
What markup should a general contractor charge?
Target 20% to 30% net margin on renovations and 25% to 35% on custom builds. In markup terms, that is 25% to 43% on renovations and 33% to 54% on custom work. On a $50,000 renovation at 28% margin, you charge $69,444 and keep $19,444. Add a separate 10% to 15% line item for project management.
What is a good profit margin for general contractors?
A good profit margin for home renovations is 20% to 30%. Kitchen and bathroom remodels should target 25% or higher. Custom builds can run 28% to 35%. If your margins are below 20%, you are likely pricing with markup math instead of margin math, or you are absorbing change orders without billing for them.
What is the difference between markup and margin in construction?
Markup is the percentage added to project costs. Margin is the percentage of the contract price that is profit. A 35% markup on a $50,000 project means you charge $67,500, but your margin is only 25.9%. On large projects, that difference can be $10,000 or more in revenue you are leaving on the table.
How do you calculate profit margin on a construction project?
Divide your gross profit by the total contract price. On a $47,250 kitchen renovation with $35,000 in costs, your profit is $12,250. Margin = ($12,250 / $47,250) x 100 = 25.9%. If you divide by cost ($12,250 / $35,000 = 35%), that is markup, not margin.
How much should general contractors mark up subcontractor costs?
Mark up subcontractor costs 10% to 15% for coordination, scheduling, and warranty management. This is separate from your overall project margin. If a plumbing sub charges $5,000, bill the client $5,500 to $5,750 for that line item, then apply your overall margin target to the full project.
Knowing Your Numbers Is Step One
This calculator shows you one piece. The Growth Report shows you the full picture: where you're leaking revenue, what to fix first, and how contractors like you are growing past the ceiling.