What is the difference between margin and markup?

Margin is profit divided by the price; markup is profit divided by the cost. Price = cost ÷ (1 − margin), so a 30% margin means dividing the cost by 0.70, which is the same as a 42.9% markup.

How do I work out my price per square?

Add your materials, labor, tear-off, disposal and overhead share for the job, divide by (1 − your target margin), then divide that price by the measured squares. The worked example above walks through it.

Should labor be charged on the waste?

Usually not. Waste is material you buy and cut off, so the calculator counts labor and tear-off on measured squares and material on order squares. If your crew is paid on order squares, enter a labor rate that reflects it.

Why are there no prices in the calculator?

Material, labor and disposal costs change by market, supplier and season, so any default would be wrong for someone. Enter your own costs; the rates in the example are only there to show the arithmetic.

Does the price include sales tax?

No. The calculator works on your costs and margin only. Add sales tax, permits and any financing fees the way your market and your accountant require.

Free calculator for contractors

Roofing Price Per Square Calculator from your own costs

Enter what the job costs you: materials, labor, tear-off, disposal and overhead. Set a target margin and get the price, the profit and the price per measured square. Nothing is pre-filled.

The formula

Labor and tear-off are counted on measured squares; material is bought on order squares, which include waste.

Order squares: measured squares × (1 + waste % ÷ 100) What you buy, waste included.
Materials: order squares × material cost per square + accessories Accessories: starter, cap, drip edge, underlayment, vents, nails, flashing.
Labor and tear-off: measured squares × labor per square; measured squares × tear-off per square + disposal Crews install and strip the roof, not the waste.
Total cost: materials + labor + tear-off + disposal + overhead share Everything the job costs you before profit.
Price: total cost ÷ (1 − margin ÷ 100) Margin is profit as a share of the price.
Price per measured square: price ÷ measured squares The number to compare jobs with.
Equivalent markup: profit ÷ total cost × 100 The same profit, expressed on the cost.

Worked example

A 25-square re-roof with 12% waste, priced at a 30% margin. Example rates, not market prices: material 140 per order square, accessories 850, labor 90 per square, tear-off 35 per square, disposal 600, overhead share 500.

Order squares: 25 × (1 + 12 ÷ 100) = 25 × 1.12 = 28 squares
Materials: 28 × 140 = 3,920, plus 850 of accessories = 4,770
Labor: 25 × 90 = 2,250
Tear-off + disposal: 25 × 35 = 875, plus 600 = 1,475
Total cost: 4,770 + 2,250 + 1,475 + 500 = 8,995
Price: 8,995 ÷ (1 − 0.30) = 8,995 ÷ 0.70 = 12,850
Profit: 12,850 − 8,995 = 3,855
Price per measured square: 12,850 ÷ 25 = 514
Equivalent markup: 3,855 ÷ 8,995 × 100 = 42.9%

At these example rates, the job prices at 12,850, or 514 per measured square, with 3,855 of profit: a 30% margin, a 42.9% markup.

Margin vs markup

Price = cost ÷ (1 − margin). The last column applies each margin to a job that costs 10,000.
Target margin	Divide cost by	Equivalent markup	Price on a 10,000 cost
10%	0.90	11.1%	11,111.11
15%	0.85	17.6%	11,764.71
20%	0.80	25.0%	12,500.00
25%	0.75	33.3%	13,333.33
30%	0.70	42.9%	14,285.71
35%	0.65	53.8%	15,384.62
40%	0.60	66.7%	16,666.67

Start from measured squares, not order squares

Measured squares are the true, sloped area of the roof divided by 100. Order squares add waste on top. Keep the two apart: you buy material on order squares, but your crew installs and tears off the measured roof. Paying labor on the waste inflates the price without anyone doing more work.

Get the measured squares from a report that corrects for pitch. A plan area from a drawing or a tax record comes up short on every pitched roof, and that shortfall lands straight in your margin. RoofStruct gives you free, unlimited self-serve measuring and PDF reports, no card, with the squares and every edge length ready to price.

Put every cost in its bucket

Materials are the shingles on order squares plus an accessories total: starter, hip and ridge cap, drip edge, underlayment, ice and water, vents, flashing and nails. Labor is your crew or sub rate per square. Tear-off and disposal sit on their own line, because a second layer or a heavy roof changes them and nothing else.

Overhead is the part people forget. Office, insurance, vehicles, software and the time you spend selling all have to be paid by jobs. Divide a year of those costs by the jobs you expect to run, and enter that share here. Leave it out and a job can look profitable while the business loses money.

Margin is not markup

Margin is profit as a share of the price. Markup is profit as a share of the cost. To hit a margin, divide the cost by (1 − margin): a 30% margin on 8,995 of cost gives 12,850. Adding 30% to the cost instead gives 11,693.50, a 23.1% margin.

The gap grows as the target rises. A 40% margin needs a 66.7% markup. If your books track margin, price with margin; the calculator shows the equivalent markup so you can compare with quotes priced the other way.

Check the price per square before you send it

The price per measured square is the number to compare jobs with. If a steep, cut-up roof comes out at the same price per square as a simple gable, something is missing: more waste, slower labor, extra flashing or a second layer.

Taxes, permits, deposits and financing fees are not in the formula. Add them the way your market and your books require.

Roofing price per square questions

What is the difference between margin and markup?: Margin is profit divided by the price; markup is profit divided by the cost. Price = cost ÷ (1 − margin), so a 30% margin means dividing the cost by 0.70, which is the same as a 42.9% markup.
How do I work out my price per square?: Add your materials, labor, tear-off, disposal and overhead share for the job, divide by (1 − your target margin), then divide that price by the measured squares. The worked example above walks through it.
Should labor be charged on the waste?: Usually not. Waste is material you buy and cut off, so the calculator counts labor and tear-off on measured squares and material on order squares. If your crew is paid on order squares, enter a labor rate that reflects it.
Why are there no prices in the calculator?: Material, labor and disposal costs change by market, supplier and season, so any default would be wrong for someone. Enter your own costs; the rates in the example are only there to show the arithmetic.
Does the price include sales tax?: No. The calculator works on your costs and margin only. Add sales tax, permits and any financing fees the way your market and your accountant require.