Construction Profit Margin Calculator
Calculate profit margin and net profit on a project.
Last updated 2026-08-21
What Is a Construction Profit Margin Calculator?
The construction profit margin calculator finds profit, margin percentage, and markup percentage from revenue and cost. It shows the difference between margin, profit as a share of revenue, and markup, profit as a share of cost. Contractors use it to price work and to review how jobs actually performed.
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.
How to Calculate
- Enter the revenue you expect or billed for the project, such as $100,000.
- Enter the total cost of the project, such as $80,000.
- Read the profit, which is revenue minus cost. That gives $20,000.
- Read the margin percentage, which is profit divided by revenue. That gives 20%.
- Read the markup percentage, which is profit divided by cost. That gives 25%, and use it to check your pricing.
Profit margin benchmarks for construction
| Benchmark | Typical range | Context |
|---|---|---|
| Overall net margin | 5 to 15% | Average contractors |
| General contractors | 10 to 20% | Before borrowing costs |
| Subcontractors | 5 to 10% | Higher volume trades |
| Custom home builders | 10 to 15% | On total project cost |
| Renovation contractors | 15 to 25% | Smaller scopes, higher risk |
Sources
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.
Estimate the cost with the Construction Cost Calculator or browse Cost Calculators