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Job profit margin calculator
Enter what you charge and what the job costs. See the profit, the margin, the markup, and the price you need to hit your target margin.
Margin is profit ÷ price. Markup is profit ÷ cost. A 50% markup is only a 33.3% margin.
Get this for every job, automatically
In Invoistic, invoices, expenses, approved labor, subcontractor bills and equipment roll into each job, so the margin is always current.
Margin or markup?
Margin is the share of the price you keep: profit divided by the price. Markup is how much you add on top of your cost: profit divided by the cost. They are easy to mix up, and the difference matters when you price a job.
Example: a job costs $1,000 and you charge $1,500. Profit is $500. Your markup is 50% ($500 ÷ $1,000), but your margin is 33.3% ($500 ÷ $1,500). If you want a 50% margin, you need to charge $2,000.
To find the price for a target margin, divide your total cost by one minus the margin: $1,000 ÷ (1 − 0.40) = $1,666.67 for a 40% margin.
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