Construction Profit Margin Evaluator
Adding 25% markup does NOT mean you have a 25% profit margin. Use this tool to prevent underbidding your next remodeling project.
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What's the difference?
Markup is the percentage added to your costs to determine the selling price.
Margin is the percentage of the selling price that is actual profit.
Your Real Numbers
A 20% margin means for every $100 billed, you keep $20.
Track Margin Live on Your Next Job →How to Calculate Construction Profit Margin
One of the sharpest traps for remodeling contractors is mistaking markup for margin. If you want a 30% gross profit margin, you cannot simply add a 30% markup to your estimate. That mathematical error will bleed thousands of dollars from your business.
The Margin Formula
To calculate your true margin, subtract your total job costs (Labor, Material, Subs) from the total billed price, then divide that result by the total billed price. Multiply by 100 to get the percentage.