Labor Markup Calculator
Convert job cost to selling price using markup or margin percentage. Shows profit and effective markup/margin relationship.
Assumptions
- Job cost includes direct labor and allocated job expenses you choose to include.
- Markup and margin are not interchangeable — mode matters.
- Does not include sales tax unless you add it separately.
- Overhead and profit targets vary by trade and region.
- Results are planning figures, not accounting advice.
Markup mode: selling price = job cost × (1 + markup%). Margin mode: selling price = job cost ÷ (1 − margin%). Profit = selling price − job cost.$1,000 job cost, 25% markup
- Selling price = $1,000 × 1.25 = $1,250. Profit = $250. Effective margin = 250 ÷ 1,250 = 20%.
How to measure
Sum labor hours × burdened rate plus job-specific costs (permits, subs, materials if included in your pricing model).
Common mistakes
- Applying margin formula to a markup target (25% markup ≠ 25% margin).
- Excluding employer taxes and insurance from job cost.
- Underpricing by using unburdened hourly wage only.
Frequently asked questions
Markup vs margin — which should I use?
Markup adds on cost; margin is profit as a share of price. Pick one method and stay consistent.
Typical contractor markup?
Varies widely — 20–50% on labor plus separate material markup is common.
Include overhead?
Job cost should reflect burdened rates if you want profit beyond base wage.
Does this handle tiered pricing?
Enter blended job cost or run separate line items in the material cost calculator.