Free contractor tool
Material Markup Calculator
Convert material cost and markup into sell price and margin — and see the exact markup you need to hit a target margin.
What markup do you need to hit a target margin?
Markup and margin aren't the same thing. To hit a target margin, use: required markup % = (target margin % ÷ (100 − target margin %)) × 100. So 40% margin requires ≈ 67% markup, and 50% margin requires a 100% markup. Contractors who set a fixed markup usually under-earn their target margin.
Inputs
We'll back into the markup needed to hit this margin.
Results
Sell price at your markup
$9,750 · 33.3% margin
Profit: $3,250
To hit target margin
66.7% markup
Sell price would be $10,833
How this calculator works
Sell price = cost × (1 + markup %).
Margin % = (sell − cost) ÷ sell × 100. Because the denominator is sell (not cost), margin is always a smaller number than the markup that produced it.
Required markup for target margin = (target margin % ÷ (100 − target margin %)) × 100. That's the markup you must apply on cost to end up with the margin you actually want on the sell price.
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