ATHENA CALCULATORS

Contractor Pricing Calculator

Estimate a selling price, gross profit, and gross margin from your job cost and markup. This free contractor pricing calculator is designed for contractors and small construction businesses that want a quick pricing check before preparing a quote or proposal.

How contractor pricing is calculated

Enter your total job cost and the markup percentage you want to apply. The calculator uses three related calculations:

Selling price = job cost × (1 + markup ÷ 100)
Gross profit = selling price − job cost
Gross margin = gross profit ÷ selling price × 100

Worked example

If your job cost is $10,000 and you apply a 20% markup, the selling price is $12,000. Gross profit is $2,000, and gross margin is 16.67%. Markup and margin are different measurements, so a 20% markup does not produce a 20% margin.

Use your actual job cost

The result is only as useful as the cost you enter. Include the labor, materials, subcontractor costs, equipment, and other job costs that belong in your pricing basis. Then review your business overhead, taxes, insurance, financing, and other expenses separately as appropriate for your pricing method.

Markup vs. gross margin

Markup measures the amount added to cost. Gross margin measures gross profit as a percentage of the final selling price. Contractors often use both numbers when reviewing whether a proposed price produces the desired return.

Important planning note

This calculator is a pricing aid, not accounting, tax, legal, or financial advice. Your actual pricing method may need to account for overhead, contingency, change orders, payment terms, local conditions, and the requirements of a specific project.

Contractor pricing guides

Use the supporting guides for a deeper explanation of markup, margin, and contractor pricing decisions.