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 Plumbing
Pre-filled with real plumbing industry benchmarks
Plumbing pricing is a mix of labor rates, parts markup, and flat-rate job pricing. The industry has largely moved toward flat-rate pricing books, where each job type has a set price regardless of how long it actually takes. This protects your margins because a skilled plumber who finishes in 45 minutes earns the same as a less experienced tech who takes 90 minutes. Parts markup in plumbing typically runs 100 to 300% on small fittings and commodity items (a $3 ball valve sold installed for $12 to $15) and 30 to 50% on big-ticket items like water heaters and sump pumps. The mistake most plumbing companies make is thinking customers shop on parts prices. They do not. They shop on total job price and trust. Your blended gross margin target should be 55 to 65% on service and repair work. This calculator helps you see the relationship between your cost, markup percentage, and resulting margin so you can price with confidence.
Markup & Margin Calculator
Pre-filled with plumbing industry defaults. Edit any field to use your real numbers.
Markup
300.0%
Margin
75.0%
Profit
$375
Plumbing industry average: 75.0% margin (25.0% COGS).