FREE PRICING CALCULATOR
Contractor profit margin calculator — from job cost to bid price.
Enter direct costs, overhead, and target margin. Get the bid price, profit dollars, and the equivalent markup — and see why markup and margin are not the same number. Free, no signup.
Job cost inputs
| Direct cost | – |
| Overhead | – |
| Break-even cost | – |
| Recommended bid price | – |
| Profit | – |
| Equivalent markup on cost | – |
Estimates only. Overhead percentage should come from your real annual numbers. Taxes not included.
The markup-vs-margin trap, in one example
Say a job costs $9,200 all-in and you "add 20 percent." Cost × 1.20 = $11,040 — but profit ÷ selling price is only 16.7 percent. To actually earn a 20 percent margin you divide: 9,200 ÷ 0.80 = $11,500. On one job that gap is $460; across a year of bids it is a wage. The divide method is the whole reason this calculator exists.
Overhead is a cost, not a profit
Insurance, the truck, the phone, software, licenses, callbacks, and every unbillable hour must be recovered before a dollar of profit exists. Contractors who price at "cost plus a little" are usually paying their overhead out of what they thought was profit. Put a real overhead number in the field above and let the bid carry it explicitly.
This math on every line, automatically.
FieldSquire turns a walkthrough — voice notes, photos, measurements — into an editable, line-item estimate with your own labor rates and markup, then sends a branded PDF for signature. Solo plan free for 14 days, no credit card.
Start the free Solo trialFrequently asked questions
What is the difference between markup and margin?
Markup is measured against cost; margin is measured against the selling price. A 25 percent markup on a $10,000 job sells for $12,500 — but the margin is only 20 percent. Contractors who quote a markup number thinking it is margin systematically underprice.
What profit margin should a contractor charge?
Many small contracting businesses target a 10 percent net profit after a true overhead number — which often means a 25 to 50 percent gross margin depending on trade and volume. The right answer comes from your own overhead, not an industry rule of thumb.
How do I calculate a bid price from cost and margin?
Divide total cost by (1 − margin). A $8,000 cost at a 35 percent target margin bids at 8,000 ÷ 0.65 = $12,308. Multiplying cost by the margin percentage instead is the classic mistake — it always comes out low.
Should overhead be a percentage or a dollar amount?
Both work if the number is real. Total your annual overhead — insurance, truck, phone, software, licenses, unbillable time — and divide by expected billable jobs or hours. This calculator applies it as a percentage of direct cost for speed.
Can FieldSquire apply my margin automatically?
Yes. FieldSquire stores your private overhead and profit settings and applies them after direct costs are entered, so the customer PDF shows the selling price while your internals stay internal. Free for 14 days.