Educational pricing guidance for residential contractors — from the Contractor Authority™ system by P4 One LLC
Contractor AuthorityContractor Authority™Pricing, profit & proposals
Home / Pricing / Glossary / Markup
Contractor glossary

Markup: Definition for Contractors

The amount added on top of your cost to set the selling price, usually expressed as a percentage of cost. A $10,000 cost with a 30% markup s

What is Markup?

Markup. The amount added on top of your cost to set the selling price, usually expressed as a percentage of cost. A $10,000 cost with a 30% markup sells for $13,000.

Why it matters to your pricing

Markup is the lever you pull, but it's not your profit. A 30% markup is only a 23% margin — confusing the two is one of the most common pricing mistakes in the trades.

This is a general educational definition, not financial or legal advice. Confirm anything regulated with your accountant or state board.
The P4 Ecosystem · One Accountable Partner
From free checklists to starter toolkits to premium builds — every stage lives inside one ecosystem.
Contractor Authority™ is a brand of P4 One LLC · SAM Active · CAGE 17SM1 · UEI SW9VDGLV8AY6 · NJ MBE #A0654-63 (Provisional) · NJ SBE #A0704-18 · NJ SEDB #A0704-17