Markup and margin measure the same profit from different angles. Markup is profit divided by cost. Margin is profit divided by price. A 50% markup equals a 33% margin. Confusing the two leads to underpricing: if you need a 40% margin and apply a 40% markup instead, you're actually running at 28.6% margin and leaving money on the table.
Markup & Margin Calculator for Electrical
Pre-filled with real electrical industry benchmarks
Electrical work is one of the most labor-intensive trades, which means your pricing is primarily driven by labor rates rather than materials markup. The typical residential electrical job is 60 to 75% labor and 15 to 25% materials, with the rest covering overhead and profit. Most electrical contractors use either flat-rate pricing books or hourly rates plus materials. Flat-rate pricing consistently produces higher margins because it rewards efficiency and removes the customer's incentive to rush the technician. Materials markup on electrical jobs typically runs 50 to 100% on wire, breakers, outlets, and fixtures. Your target blended margin on residential service work should be 50 to 60%. This calculator helps you understand the gap between your markup percentage and actual margin so you price every job to hit your targets.
Markup & Margin Calculator
Pre-filled with electrical industry defaults. Edit any field to use your real numbers.
Markup
298.6%
Margin
74.9%
Profit
$412
Electrical industry average: 75.0% margin (25.0% COGS).