Contractor Profit Margin Calculator
By BuildFolio Team · Last updated January 28, 2026
Enter your job revenue and costs to see your real gross and net profit margins. Most contractors overestimate their margins by 5-15%.
Calculate Your Profit Margin
Your Job Profit Margins
TL;DR — Margin Benchmarks
Target 15-25% net profit margin. Gross margins by trade: Roofing 35-50%, HVAC 30-45%, Plumbing 35-55%, Electrical 35-50%, Painting 40-55%. If your net margin is below 10%, you are likely underpricing or have excessive overhead.
Understanding Your Results
Gross Margin
Gross margin = (Revenue – Materials – Labor) / Revenue. This shows what is left after direct job costs. Healthy range: 30-55% depending on trade.
Net Margin
Net margin = (Revenue – All Costs) / Revenue. This is your actual profit after overhead. Healthy range: 15-25%. Below 10% means you need to raise prices or cut overhead.
Markup vs. Margin
These are different calculations that contractors often confuse:
| Markup | Equals This Margin |
|---|---|
| 20% | 16.7% |
| 33% | 25% |
| 50% | 33% |
| 67% | 40% |
| 100% | 50% |
Track Margins on Every Job Automatically
BuildFolio’s Profit Intelligence tracks actual costs vs. estimates in real-time. See your true margin per job. $29/mo.
Frequently Asked Questions
What is a good profit margin for contractors?
A healthy net profit margin for contractors is 15-25%. Gross margins vary by trade but typically range from 30-55%. If your net margin is below 10%, you are likely underpricing or have overhead issues that need addressing.
What is the difference between markup and margin?
Markup is the percentage added to cost to get the selling price. Margin is the percentage of the selling price that is profit. A 50% markup equals a 33% margin. A 100% markup equals a 50% margin. Contractors often confuse the two, leading to underpricing.