Proposed price
-
| Margin dollars | - |
|---|---|
| Margin % | - |
| Markup % | - |
| After discount, price | - |
| After discount, margin $ | - |
| After discount, margin % | - |
Cost does not fall when the price is discounted. Always look at dollars remaining, not only the new percentage. Replace the $10,000 starter figure with your own complete cost - labor burden, materials, other direct costs, and a fair share of overhead.
Why contractors mix these up
Markup is the percentage you add on top of cost. Margin is the percentage of the selling price that remains after cost. A 25% markup on a US$10,000 cost is a US$12,500 price and a 20% margin - not 25%. To hold a 25% margin on that same cost, the price is US$13,333.33. That gap is about US$833 in the bid. These figures are a teaching example only.
Read the full walk-through in Markup vs. margin for contractors, or see how to price a remodeling job, how to bid a painting job, or the HVAC pricing guide. For the cost sheet itself, see the contractor job costing template.
Want the full method and the Excel files?
The MarginMaster course (US$59, one-time) covers job costing, quotes, crew cost, and cash, with templates you can reuse. Instant access after payment. We do not promise income or margin results.