Job Profit Margin Calculator
Enter a job's price and costs to see gross profit, gross margin, and markup — and finally understand the difference between margin and markup.
Use fully loaded labor (wages + payroll taxes).
Gross profit
$400
Total cost
$600
Gross margin
40%
Profit ÷ price
Markup
66.7%
Profit ÷ cost
Cost breakdown
- Materials$400
- Labor$200
How this calculator works
- Gross profit = revenue − all job costs (materials, labor, subcontractors, other).
- Gross margin = gross profit ÷ revenue (profit as a share of the price).
- Markup = gross profit ÷ total cost (profit as a share of cost).
Worked example
A $1,000 job with $600 of costs makes $400 gross profit — a 40% margin but a 66.7% markup. Same dollars, two very different percentages.
Assumptions & limitations
- Use fully loaded labor (wages plus payroll taxes and benefits).
- Gross margin covers direct job costs only — it must still cover overhead to leave net profit.
Disclaimer
Educational estimate only. Gross margin is not net profit; overhead and taxes reduce what you keep.Calculator FAQ
Why is markup higher than margin?
Markup is measured against cost (a smaller number), while margin is measured against price (a larger number), so the markup percentage is always higher for the same dollar profit.
What margin should I aim for?
There's no universal number — it varies by trade. Track your own margins and make sure they're high enough to cover overhead and still leave net profit.