FREE TOOL FOR TRADES OWNERS
Your 50% Markup Is Not
50% Profit.
Not even close.
Most trades owners price jobs using markup. They see 30%, 40%, 50% and think that's their margin. It isn't. Markup and gross margin are two completely different numbers — and confusing them is costing you money on every single job.
Here's the math most owners have never seen.
MARKUP VS MARGIN — SAME JOB
| MARKUP | GROSS MARGIN | |
| Cost | $100 | $100 |
| Formula | Cost × 1.50 | Cost ÷ 0.50 |
| Selling Price | $150 | $200 |
| Target % | 50% | 50% |
| Real % | 33.33% | 50% |
Same job. Same cost. Same target.
Two completely different outcomes.
When you multiply your cost by 1.50 you're adding 50% on top of what you paid. That feels like 50% profit. But gross margin is calculated against your selling price — and on a $150 sale, your $50 profit is only 33 cents of every dollar coming in. Not 50.
To actually hit 50% gross margin you need to be selling that $100 job for $200 — not $150. That's a $50 difference. On every single job.
Cost $100 • Selling Price $150 • Markup 50% • Gross Margin 33.33%
Start With Step 4.
Get the Free Calculator.
The Blue Collar Calculator is a free tool built specifically for trades owners. Enter any two numbers — cost, selling price, markup, or margin — and it calculates the rest instantly.
