Profit Margin Calculator
Use this profit margin calculator to work out the selling price needed to hit your target profit margin.
What This Calculator Does
This calculator converts a desired margin into a required selling price. It helps you quote jobs with the margin you actually want rather than relying on rough estimates.
How to Use
- Enter your total cost.
- Enter your target margin percentage.
- Click calculate.
- Use the result as your target selling price.
Example
If a job costs $2,500 and you want a 30% margin, the calculator shows the selling price required to reach that target.
Why This Calculation Matters
Margin tells you how much of the sale price stays in the business after direct costs. It is a core number for trades businesses that want to grow profit instead of just staying busy.
Common Mistakes
- Confusing margin with markup.
- Ignoring waste and small overruns.
- Pricing low to win work without checking the true margin.
- Using round numbers that feel right instead of checking the math.
FAQs
What is profit margin?
Profit margin is the percentage of the final selling price that remains after cost is taken out.
Why does margin matter?
It helps you see whether a job is actually profitable, not just busy.
Can I use margin for quoting?
Yes. Many contractors use a target margin to set quote prices more consistently.