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Subcontractor Markup Calculator

Determines what markup to apply to subcontractor invoices for profit and overhead recovery. Shows billed amount and margin.

Applied to (sub invoice + overhead)

Results

Billed to Client
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Total Markup
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Markup %
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Effective Margin
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Markup Breakdown

Standard GC overhead on subcontracted work is 10-20%. Profit on subs is typically 10-15%. Total markup of 20-30% is common in the industry.

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How to Use This Calculator

1. Enter the subcontractor invoice amount. This is what the sub charges you for the completed work.

2. Set your overhead allocation. Choose either a percentage of the invoice or a fixed dollar amount. This covers your cost of managing the sub.

3. Set your desired profit. This is applied to the sub invoice plus overhead, giving you the final billed amount to your client.

How the Formula Works

Overhead_$ = Sub_Invoice x Overhead_% (or fixed $)

Profit_$ = (Sub_Invoice + Overhead) x Profit_%

Total_Markup = Overhead + Profit

Billed_Amount = Sub_Invoice + Total_Markup

Markup_% = Total_Markup / Sub_Invoice x 100

Frequently Asked Questions

How much should a GC mark up subcontractor work?
GCs typically mark up sub work 15-30%, split between overhead recovery (10-15%) and profit (10-15%).
Is it fair for a GC to mark up subcontractor work?
Yes. The markup covers real costs: finding and vetting subs, coordinating schedules, managing quality, handling insurance, and taking responsibility under the prime contract.
Should I mark up materials the same as labor?
Many GCs use a lower markup on material pass-throughs (5-15%) compared to labor-heavy sub work (15-30%). If you handle procurement and delivery coordination, a higher markup is justified.

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