Contractor Markup Calculator
Calculate bid price with contractor markup.
Last updated 2026-08-21
What Is a Contractor Markup Calculator?
The contractor markup calculator finds the bid price by adding a markup percentage to a project cost. It is the standard way contractors cover overhead and profit on a job. Homeowners can use the same math to understand what a bid includes and to compare quotes.
How It Works
Markup = Project cost × Markup % ÷ 100. Bid price = Cost + Markup.
Example
A $100,000 project at 15% markup: $15,000 markup → $115,000 bid.
How to Calculate
- Enter the hard project cost, the sum of materials, labor, and subcontracts, such as $100,000.
- Enter the markup percentage you need to cover overhead and profit, such as 15%.
- Read the markup amount, which is cost times the percentage divided by 100. That gives $15,000.
- Read the bid price, which adds the markup to the cost. That gives $115,000.
- Consider adding contingency separately on top, commonly 5 to 10%, before you submit the bid.
Markup and what it covers
| Markup on cost | What it covers | Common for |
|---|---|---|
| 10% | Overhead only | Large commercial jobs |
| 15% | Overhead plus slim profit | Average contractor |
| 20% | Overhead plus full profit | Small jobs and repairs |
| 25% | Profit plus risk allowance | Specialty trades |
| 33.3% | High risk or small scopes | Short notice work |
Sources
Frequently Asked Questions
What is a typical contractor markup?
10–20% on top of hard costs is common to cover overhead and profit.
Is this the same as margin?
No. Markup is a percentage of cost; margin is profit as a percentage of the selling price.
Should my bid include contingency?
Contingency is often added separately on top of the markup — budget 5–10% for unknowns.
Estimate the cost with the Construction Cost Calculator or browse Cost Calculators