10/27/2026
25% markup is not 25% margin.
Illustration: a job costs $80,000. Add 25% of cost, and the price is $100,000. The $20,000 difference is 20% of the selling price.
To produce a 25% margin on that same $80,000 cost, the price would be $106,666.67, before considering whether your cost estimate includes everything it should.
Neither figure is a recommended price or target. The point is to know which calculation your bids use.
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