From true job cost to a profitable selling price
True estimated job cost includes labor, materials, subcontractors, equipment, permits, other direct costs, the overhead assigned to this job, and contingency. It is the cost basis used to calculate price.
Profit margin measures expected profit against selling price. Markup measures the same profit against cost. They are not interchangeable. Learn the difference between markup and margin or verify a conversion with the Markup and Margin Calculator.