What profit margin should a contractor target?

Net margins of 8–15% are common after overhead; gross margins of 25–40% on jobs are typical before fixed costs.

How do I price for a specific margin?

Divide cost by (1 − margin). For a 30% margin on $1,000 cost, price is $1,000 ÷ 0.7 = $1,428.

Use markup at the estimating table and check margin to confirm the job actually clears your target.

Profit Margin Calculator

Profit margin is profit as a percentage of price: (price − cost) ÷ price. To hit a target margin, price = cost ÷ (1 − target margin).

Job cost($)

Target margin(%)

Your result

Price to charge

$1,428.57

Profit$428.57

Equivalent markup42.9%

Turn job cost into a selling price at your target markup.

Total labor cost from crew size, hours and hourly rate.

Total material cost from quantity, unit price and waste.

Gut-to-finish kitchens scoped from a few photos and priced in minutes.

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EstimateVision reads the scope from photos, video and voice, prices it for your area, and sends a signed proposal on the spot.