Is the markup and margin calculator free?

Yes. You get the spreadsheet for Excel or Google Sheets with the markup calculator, the margin calculator, the cheat sheet and the Job Price Builder tab. There is no sales call.

Markup and Margin Calculator for Contractors

Spreadsheet · Excel + Google Sheets

Markup & Margin Calculator

Markup on cost	Margin it really gives you
25%	20%
50%	33%
100%	50%
200%	67%

✓Price a part from a markup or from a target margin

✓Job Price Builder: labor + parts + tax + service fee

Cheat sheet runs from 25% to 300% markup.

Most shops price parts on markup and budget on margin. They sound like the same thing. They aren't, and the difference comes straight out of your profit.

This spreadsheet does the math both ways. Put in a markup and see the margin it really gives you, or start from the margin you need and see the markup it takes. Then build a full job price from your billable hour, hours on the job, parts at your markup, tax and your service fee.

Rather have the whole menu built and kept up for you? Start a free trial of The New Flat Rate.

The short answer

What is a markup and margin calculator for contractors?

A markup and margin calculator for contractors shows the gap between the two numbers. Markup is figured on your cost; margin is figured on your selling price, so a 50% markup is only a 33% margin. This free spreadsheet from The New Flat Rate, menu pricing software and training for home service contractors, prices a part either way, includes a 25% to 300% cheat sheet, and builds a job price from your billable hour, parts, tax and service fee.

Frequently asked

Markup and margin FAQs

What is the difference between markup and margin?

Markup is figured on your cost. Margin is figured on your selling price. Buy a part for $50 and sell it for $100: that is a 100% markup, but only a 50% margin, because the $50 profit is half of the selling price. Same dollars, two different percentages.

How do you convert markup to margin?

Margin equals markup divided by one plus markup. A 50% markup is 0.5 divided by 1.5, or about a 33% margin. To go the other way, markup equals margin divided by one minus margin, so a 50% margin needs a 100% markup. The calculator does both, plus a cheat sheet from 25% to 300% markup.

What markup should contractors use on parts?

There is no single right number for every shop. Your parts markup depends on your costs, your overhead, the margin your budget needs and how you price labor. Work backward from the margin you need, use the calculator to find the markup that gets you there, and check it against real jobs.

Why does margin matter for my billable hour?

Your billable hour is what every hour on a paid job has to bring in to cover wages, overhead and profit. If your budget is built on margin but you price parts on markup thinking they are the same number, every job comes up short and the billable hour has to cover the gap. Get both right and the job price holds up.

Q5	Is the markup and margin calculator free? Yes. You get the spreadsheet for Excel or Google Sheets with the markup calculator, the margin calculator, the cheat sheet and the Job Price Builder tab. There is no sales call.

Need your billable hour first? The Job Price Builder starts with it. Work it out in the free Billable Hour Calculator.

Free Markup & Margin Calculator for Contractors