Markup vs Margin Calculator
Instantly convert between markup and margin percentages. See revenue, cost, and profit breakdowns with visual comparisons and step-by-step formulas.
Markup = (Price - Cost) / Cost x 100 | Margin = (Price - Cost) / Price x 100
Common Markup to Margin Conversions
| Markup % | Margin % | On $100 Cost |
|---|---|---|
| 10% | 9.09% | Price: $110 | Profit: $10 |
| 15% | 13.04% | Price: $115 | Profit: $15 |
| 20% | 16.67% | Price: $120 | Profit: $20 |
| 25% | 20% | Price: $125 | Profit: $25 |
| 33.33% | 25% | Price: $133 | Profit: $33 |
| 50% | 33.33% | Price: $150 | Profit: $50 |
| 75% | 42.86% | Price: $175 | Profit: $75 |
| 100% | 50% | Price: $200 | Profit: $100 |
Understanding Markup vs Margin for Contractors
One of the most common — and costly — mistakes in the construction industry is confusing markup with margin. While both measure profitability, they use different denominators and produce different numbers for the same dollar profit. A contractor who thinks they are earning a 25% profit when they apply a 25% markup is actually earning only a 20% margin.
Industry Standards
According to construction industry surveys, the average general contractor operates on a net profit margin of 5-10% after overhead. To achieve a 10% net margin, a contractor typically needs a markup of 35-50% on direct costs to cover both overhead (15-25%) and profit. Specialty contractors (electrical, plumbing, HVAC) often achieve higher margins of 8-15% due to specialized skills.
Exam Relevance
The Florida General Contractor exam's Business & Financial Management section tests your understanding of cost-plus pricing, markup calculations, and profit margin analysis. You may be given a scenario where you must calculate the selling price from a desired margin, or determine the actual margin from a stated markup. Knowing both formulas — and when to use each — is essential for passing.
Frequently Asked Questions
Ready to Practice Real Exam Questions?
Try free FL General Contractor practice questions covering Business & Finance, Contract Administration, and Project Management.
Start Free PracticeFL Contractor Exam Resources
Explore More
Construction Bid Calculator
Build professional bids with labor, materials, overhead & profit
Contractor Hourly Rate Calculator
Calculate your billable hourly rate with burden, overhead & profit
Contractor Insurance Estimator
Estimate GL, workers comp & bond insurance costs for FL contractors
Surety Bond Calculator
Calculate surety bond premium costs for Florida contractors