Mix up the math of what you add (markup) with what you actually keep (margin), and your profit can disappear into a hole you didn’t see coming. Test your own numbers and get the math straight.
Markup and margin get confused all the time in construction. Neither concept is hard on its own—they just get mixed up.
Because sometimes people think that a 50% markup means a 50% margin, and that’s just not how reality works. A 1.5 markup actually leaves you with a 33.3% margin. If you treat them as the same thing, your projects end up not being worth nearly as much as you expected.
You can plug in your own costs and see the differences between markup and margin in action. Here’s what you can do inside the sheet:
We kept it nice and simple so you can stop guessing and decide the markup that actually works with your numbers.
If you’re a contractor who wants your bids and your profit to make sense in the same sentence, this is for you.
If you’re tired of doing the books but not trusting them, let’s take a look. When you’re ready, here’s the next step.
