Quick definition: The percentage you add on top of your cost to set your selling price — different from margin.
Markup and margin are not the same number, and confusing them is one of the most common ways contractors underprice.
The formula: Markup = (Sell price − cost) ÷ cost × 100.
Example: A $100 part you sell for $150 has a $50 markup, which is a 50% markup — but only a 33% margin. To get to a 50% margin, you would need to sell that part at $200 (100% markup).
Typical contractor markups: 50-100% on materials, 30-50% on subcontractor labor. JobPricer lets you set a default markup % once, and applies it to every AI-drafted quote automatically.