Profit Margin Calculator
Calculate the sell price needed to hit a target margin, or check the real margin on any existing quote.
Calculate Your Job Profit Margin
Switch between two modes: enter your cost and a target margin to get the price to charge, or enter a quote you've already written to see the margin it really makes. It also spells out the difference between markup and margin — the mix-up that quietly underprices a lot of jobs.
Gross profit does not account for tax, loan repayments, or drawings. Use net profit after all fixed and variable costs to assess true business performance.
How the Profit Margin Calculator Works
- Choose a mode — Calculate Sell Price to work out what to charge, or Check a Quote to review an existing price
- Enter your total job cost — include materials, labor, subcontractors, and any direct overheads
- For Sell Price mode: enter your target margin percentage to get the sell price and gross profit
- For Check a Quote mode: enter your quoted price to see the actual margin, markup, and gross profit
- Use the insight note to check whether your margin is in a healthy range for this type of work
Examples
Frequently Asked Questions
What is the difference between margin and markup?
Both measure profit — but they measure it against different numbers, which is why they always give you a different percentage for the same job.
Markup is your profit as a percentage of what the job costs YOU. If a job costs you $2,000 and you make $800 profit, your markup is 40% — because $800 is 40% of your $2,000 cost.
Margin is your profit as a percentage of what the CUSTOMER pays. Same job: you charge $2,800, your profit is still $800 — but your margin is only 28.6%, because $800 is 28.6% of the $2,800 sell price.
The trap: most contractors say "I want 40% margin" but then calculate their price by adding 40% on top of their cost. That gives you 40% markup — which is only 28.6% margin. You end up underpricing every job without realising it.
Simple rule to remember: for the same job, markup is always a bigger number than margin. If someone tells you they make "40% margin" and they calculated it by adding 40% to cost, their real margin is closer to 29%.
What margin should I target for epoxy flooring work?
Typical gross margins for residential epoxy and coating work range from 35–45%. Commercial and industrial work often falls in the 30–40% range. Decorative and metallic systems, which require more skill and carry higher risk, can justify 45–55%. These figures are before tax, loan repayments, and drawings.
Does gross profit include my wages?
Gross profit is revenue minus direct job costs only. If your labor cost is included in the job cost figure you enter, then yes — your time is accounted for. However, gross profit does not cover business overheads like insurance, vehicle costs, or equipment depreciation unless you include those in your cost figure.
Why is my sell price so much higher than I expected?
Because margin and markup work differently. To achieve a 40% margin, you need a 66.7% markup on cost — not a 40% markup. This is why pricing on markup alone consistently underprices the job.
Important Notes
- Job cost should include all direct costs — materials, labor, subcontractors, consumables, and any site-specific expenses
- Gross margin does not account for fixed business overheads — ensure your target margin covers these on top of direct costs
- GST or sales tax is not included — add it to the sell price after calculating your margin
- A margin below 20% leaves very little room for unexpected costs or rework on a job
- Review your margin targets regularly as material costs and labor rates change