Job cost and markupLive calculation
Free contractor pricing tool
Free contractor markup calculator
Calculate in your browser
Add the costs of a job, include the overhead assigned to it, and enter a markup percentage. The calculator shows the quote price, markup amount, and gross margin without storing or sending the values you enter.
Free, no sign-up, and no cost values leave this page.
Four steps
How to calculate a contractor quote with markup
Keep the cost basis visible so the final percentage can be checked rather than hidden inside a single total.
Enter direct job costs
Add materials, labor, subcontractors, equipment, and other costs that belong directly to the job.
Assign overhead
Enter the share of business overhead that this job needs to recover rather than hiding it inside another cost.
Choose a markup
Enter the percentage added to total cost. Use a rate supported by your own costs, market, risk, and contract.
Review and prepare the estimate
Check the resulting price, markup amount, and gross margin before transferring the figures to an estimate or quote.
Pricing guidance
Understand the figures before sending a quote.
Markup and margin are different percentages
Markup measures profit against cost. Gross margin measures the same profit against the selling price, so a 20% markup does not produce a 20% gross margin. On a total cost of $5,000, a 20% markup adds $1,000 and produces a $6,000 quote; the resulting gross margin is 16.67%.
Use one basis consistently when comparing jobs. Mixing a margin target with a markup formula can leave a quote below the intended selling price even when the arithmetic appears correct.
- Markup = profit divided by total cost
- Gross margin = profit divided by quote price
- Quote price = total cost plus markup amount
- A higher cost base changes both the markup amount and final price
Build the cost base before applying markup
A useful quote starts with the costs the business expects to incur. Direct job costs can include materials, job labor, subcontractors, equipment, permits, delivery, and other items that can be identified with the work. Overhead covers the business costs allocated to the job but not traced to one line item.
This calculator is a pricing estimate, not an accounting, tax, legal, or contract determination. Review the scope, quantities, supplier prices, labor assumptions, exclusions, taxes, payment terms, and approval process before giving a customer a final figure.
- Keep material quantities and supplier prices current
- Use the actual labor cost basis chosen by the business
- Separate subcontractor and equipment assumptions
- Document exclusions and change-order rules in the estimate
Sources and scope
- U.S. Small Business Administration: Break-even point calculator — Fixed-cost, variable-cost, selling-price, and profit planning concepts.
- Acquisition.gov FAR 31.201-1: Composition of total cost — A public reference for the distinction and combination of direct and indirect contract costs; it does not set a general commercial markup rate.
FAQ
Contractor markup calculator questions.
How do you calculate contractor markup?
Add direct job costs and the overhead assigned to the job, then multiply that total cost by the markup percentage. Add the markup amount to total cost to obtain the quote price.
What is the difference between markup and gross margin?
Markup divides profit by cost. Gross margin divides profit by selling price. Because the denominators differ, the two percentages are not interchangeable.
Should overhead be included before markup?
The price needs to recover the overhead that the business assigns to the job. This calculator lists overhead separately so the cost basis remains visible before markup is added.
Does the calculator include tax?
No. It calculates cost, markup, quote price, and gross margin before transaction tax. Tax treatment depends on the location, transaction, and business, so add it in the estimate or invoice only after checking the applicable rule.
Are the values entered into the calculator saved?
No. The calculation runs in the browser and Pocket Invoice does not send or store the cost values entered into this tool.
Next step
Use the number in a clear customer document.
The price is only useful when the scope, quantities, terms, and approval path are written clearly.