TapeAndFloat.comMarkup vs margin calculator for drywall contractors
Markup is profit as a percent of your job cost; margin is profit as a percent of your bid price. The same dollars of profit give a smaller margin than markup. This free calculator takes your job cost and a markup, a target margin or a bid price and shows the bid price, profit, markup and margin.
Use your own costs. Nothing is pre-filled, there is no suggested markup, and nothing you type leaves your browser. Free, no sign-up.
The math, in plain words
- Job cost = labor + material + other costs (or the one total you typed).
- Bid price from a markup = job cost × (1 + markup ÷ 100).
- Bid price from a target margin = job cost ÷ (1 − margin ÷ 100). Margin has to be under 100%.
- Profit = bid price − job cost.
- Markup = profit ÷ job cost × 100.
- Margin = profit ÷ bid price × 100.
- Markup to margin: margin = markup ÷ (100 + markup) × 100. Margin to markup: markup = margin ÷ (100 − margin) × 100.
Markup to margin conversion table
Pure math, the same for any job size. These are not suggested percentages.
| Markup on cost | Margin on price |
|---|---|
| 10% | 9.09% |
| 15% | 13.04% |
| 20% | 16.67% |
| 25% | 20% |
| 30% | 23.08% |
| 40% | 28.57% |
| 50% | 33.33% |
| Target margin on price | Markup on cost needed |
|---|---|
| 10% | 11.11% |
| 15% | 17.65% |
| 20% | 25% |
| 25% | 33.33% |
| 30% | 42.86% |
| 40% | 66.67% |
Use it with your bids
Put your costs and price on the free drywall bid sheet (Excel + CSV, English/Spanish) or the free drywall estimate template, and work out square-foot pricing from your own rates with the drywall bid calculator. What the words mean: markup vs. margin, overhead and profit and job costing. For the full process, read How to bid drywall. More free tools: all free drywall office templates, the retainage calculator and the job cost calculator (bid vs actual).
Frequently asked questions
What is the difference between markup and margin? Markup is profit divided by your job cost. Margin is profit divided by your bid price. On the same job the profit dollars are the same, but margin is always the smaller percent because the price is bigger than the cost.
Why doesn't a 20% markup give me a 20% margin? Because the 20% is taken on cost, and margin is measured on price. A 20% markup on cost works out to a margin of 20 ÷ 120, about 16.67%. To get a 20% margin you need a 25% markup.
How do I price a job to hit a target margin? Divide your job cost by (1 minus the margin as a decimal). For a 25% margin, divide the cost by 0.75. Margin has to be under 100%, because at 100% the cost would be zero.
Does this calculator tell me what markup to use? No. It only does the math on the numbers you type. There is no suggested or average percent, nothing is pre-filled and nothing you enter leaves your browser.
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En español: Calculadora de sobreprecio y margen de ganancia.