The maths, explained
Markup and margin describe the same profit using different denominators. Here, you enter the total job cost and the desired gross margin; the calculator solves for selling price and shows the equivalent markup. This is useful when a supplier, estimator or client uses a different pricing vocabulary. The result assumes that the entered cost includes everything you want that margin to cover.
Selling price = cost ÷ (1 − margin); markup = (selling price − cost) ÷ cost × 100
A worked example
The worked example below uses the calculator’s initial inputs and the same calculation function as the live interface. Replace example amounts with your own records; changing currency does not convert the numbers. Physical reference dimensions are stored in metric units, and the interface can display their imperial equivalents. Rounded display values may differ slightly from the full precision retained in the calculation.
| Your inputs | Editable example — not a market quote |
|---|---|
| Total job cost (CAD) | 12,000 |
| Target gross margin (%) | 25 |
| Selling price for target margin | $16,000.00 |
| Gross profit | $4,000.00 |
| Equivalent markup | 33.33% |
Assumptions used
All cost inputs must cover the same period and use one currency. Employer charges and overhead remain business-specific inputs. Defaults are educational scenarios, not market averages. This model does not determine tax obligations or contractual rights. Ratios with a zero denominator are marked as undefined rather than presented as a misleading zero percent.
On your side of the Atlantic
Canadian projects often mix metric drawings with imperial products. Confirm the supplier’s units and the applicable GST, HST or PST treatment for your province.
Common mistakes
A 25% markup does not produce a 25% margin. Keep tax treatment consistent between cost and selling price. A zero cost makes the markup ratio undefined, even if a numerical selling price can be displayed.
Before ordering or tendering, compare at least two scenarios: your base takeoff and a realistic alternative. Keep assumptions with the result so differences are explainable. Save an estimate only on a suitable device. A shared link contains the entered values, so avoid including confidential information. An exported estimate is a snapshot and does not update when a supplier changes a price.
Questions from the jobsite
What does this calculator measure?
What is the first mistake to avoid?
Are the example prices supplier quotes?
Which tax assumptions apply in Canada?
How should I handle waste and contingency?
Can I use the result in a tender or estimate?
Planning estimate only. Not a substitute for a professional quote or local building-code compliance. Verify quantities, tax treatment and contract requirements.
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