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$
% custom
Selling Price $1,500.00
Gross Profit $500.00
Profit Margin 33.3%
Markup vs Margin

50% markup does not equal 50% margin.
Markup is based on cost: $1,000 + 50% = $1,500
Margin is based on selling price: $500 / $1,500 = 33.3%

This is one of the most common pricing mistakes contractors make.

Want to master contractor pricing?

The Contractor Pricing Guide covers markup, margin, labor rates, and how to price jobs profitably.