Roofing Markup vs Margin Calculator
On a $5,500 reroof, the markup vs margin confusion can cost you $1,000+ per job.
🔄 I Know My...
Enter a markup or margin and we'll calculate everything else.
💰 Job Cost
Your total cost on this roofing 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 | $5500 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.
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Markup vs Margin for Roofing Contractors
Roofing jobs are big tickets with big costs. Materials alone can be $2,000 to $4,000 per reroof. When you confuse markup and margin on numbers that large, the dollars add up fast.
This calculator shows you exactly what you keep at any markup or margin percentage. Plug in your job cost and see both numbers side by side. On a $5,500 reroof, the difference between a 40% markup and a 40% margin is over $1,500 in revenue.
The Most Common Mistake
Roofing contractors often price per square and add a "40% profit." But 40% markup on a $5,500 job means you charge $7,700 and keep $2,200. Your actual margin is 28.6%. After overhead (truck, insurance, dump fees, office), you might clear 10% to 12%. On an $8,000 job, that is $800 to $960 in net profit. One weather delay or material reorder and it is gone.
Roofing Example
Standard reroof: $5,500 cost (crew, shingles, underlayment, dumpster). At 40% markup you charge $7,700 (28.6% margin, $2,200 gross profit). At 40% margin you charge $9,167 ($3,667 gross profit). Difference: $1,467 per job. At 8 reroofs per month, that is $11,736 in monthly revenue. Over a season, that is the difference between a profitable year and a stressful one.
What We Recommend
Price reroofs using margin math. Target 28% to 35% net margin on standard reroofs and 35% to 45% on repairs and storm work. Materials are your biggest variable, so lock shingle pricing with your distributor at the start of each season. Then set your price per square based on margin, not markup.
Frequently Asked Questions
What markup should roofing contractors use?
Most roofing contractors use 35% to 50% markup, but the important number is margin. A 40% markup on a $5,500 reroof gives you only 28.6% margin ($2,200 profit on $7,700 price). Target 28% to 35% net margin on standard reroofs and 35% to 45% on repairs. Then convert your margin target to markup for your per-square pricing.
What is a good profit margin for roofing companies?
A good profit margin for standard reroofs is 28% to 35%. Storm and insurance work should target 35% to 45% because the work is more complex and callbacks are more likely. Repairs should be at 40% or higher because they are smaller jobs with proportionally higher overhead per job.
What is the difference between markup and margin for roofers?
Markup is the percentage added to your cost. Margin is the percentage of the selling price that is profit. A 40% markup on a $5,500 reroof means you charge $7,700, but your margin is only 28.6%. On big ticket roofing jobs, this gap can mean $1,000 to $2,000 in revenue left on the table per project.
How do you calculate profit margin on a roofing job?
Divide your gross profit by the selling price. If a reroof costs $5,500 and you charge $7,700, your profit is $2,200. Margin = ($2,200 / $7,700) x 100 = 28.6%. Do not divide $2,200 by $5,500. That gives you 40%, which is markup, not margin.
How should roofers price per square for profit?
Calculate your total cost per square (materials, labor, dumpster, overhead allocation), then divide by (1 minus your target margin). If your cost per square is $350 and you want 33% margin, your price per square should be $350 / 0.67 = $522. Do not just add a percentage on top of cost. That is markup, and it will undershoot your margin target.
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.