Contractor Markup Calculator
Calculate sell price from job cost. Apply desired profit margin and overhead. Essential for roofing contractor pricing.
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Markup Calculation
Sell Price = Job Cost ÷ (1 - Margin% - Overhead%)
Margin on revenue
Gross Profit = Sell Price - Job Cost
Before overhead allocation
Net Profit = Gross - (Sell × Overhead%)
After overhead
To achieve a target profit margin, divide job cost by (1 - margin - overhead). Example: 20% margin + 15% overhead = 65% cost recovery, so multiply cost by 1.54.
Reference: Build Folio, contractor pricing guides
Frequently Asked Questions
Roofing contractors typically target 15-25% net profit. Insurance restoration work can achieve 25-35%. Average is around 15%.
Overhead (office, insurance, trucks, etc.) typically runs 15-30% of revenue. Include it in your markup so it's covered before profit.