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 Roofing
Pre-filled with real roofing industry benchmarks
Roofing pricing starts with a material takeoff and labor estimate, then adds overhead and profit on top. The standard pricing formula in roofing is materials plus labor plus overhead plus profit, often expressed as a multiplier on material cost. Most residential roofers apply a 1.5x to 2.0x multiplier on total material cost to arrive at their selling price for the materials portion, then add labor at $50 to $100 per square (100 sq ft) for tear-off and $50 to $85 per square for installation. But the real margin discussion in roofing is about per-square pricing vs. per-job pricing. The industry average for a standard asphalt shingle re-roof is $350 to $600 per square installed, with material cost of $100 to $175 per square. That gap is where your labor, overhead, and profit live. This calculator helps you see how different markup strategies translate into actual margins on your roofing jobs.
Markup & Margin Calculator
Pre-filled with roofing industry defaults. Edit any field to use your real numbers.
Markup
122.2%
Margin
55.0%
Profit
$495
Roofing industry average: 55.0% margin (45.0% COGS).