Construction Profit Margin Calculator
Calculate profit margin and net profit on a project.
How It Works
Profit = Revenue − Cost. Margin % = Profit ÷ Revenue × 100. Markup % = Profit ÷ Cost × 100.
Example
$100,000 revenue on $80,000 cost: $20,000 profit → 20% margin, 25% markup.
Frequently Asked Questions
Margin or markup — which do I quote?
Quotes are usually built on markup (cost × factor), but margin shows your true profit share of the sale price.
What is a healthy construction margin?
Net margins of 5–15% are typical for contractors, depending on the trade and market.
Why do the two percentages differ?
Because they use different bases — revenue for margin, cost for markup — so the same profit yields different numbers.