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.