PRICING
How Much to Charge as a General Contractor (2026 Markup Guide)
What general contractors should charge in 2026: markup ranges, hourly rates, profit targets, overhead and how to price a remodel.
General contractors price work on markup, not hourly labor alone. The market benchmark is 15-30% on total cost, and the most profitable GCs track overhead precisely so that markup is profit, not survival. Here are the 2026 numbers.
THE SHORT ANSWER
General contractor markup 2026
General contractors mark up 15-30% on total project cost in 2026 (residential common 15-20%; average 20-30%). Materials carry 7.5-20% and labor 25%+. Net profit target: 8-15% of project price.
Markup benchmarks
General contractors mark up 15-30% on total project cost in 2026, with the common residential range at 15-20% and the average across projects at 20-30%. Materials typically carry 7.5-20% markup and labor 25%+, reflecting the risk and coordination each carries.
Your net profit target should be 8-15% of the project price after all costs. That target only survives if overhead is priced into the markup rather than treated as an afterthought.
- Markup on total cost: 15-30% (residential common 15-20%)
- Materials markup: 7.5-20%
- Labor markup: 25%+
- Net profit target: 8-15% of project price
- Hourly rate for small consulting jobs: $75-$150
What that means for typical projects
A kitchen remodel runs $15k-$150k (typical full remodel $45k-$80k); a bathroom runs $10k-$45k (mid-range $10k-$25k); a whole-home renovation runs $19,500-$88,400. On a $60,000 kitchen, a 20% markup adds $12,000 — that $12,000 must cover your overhead and produce your profit target.
Use your estimate calculator to separate labor, materials, subs and overhead, then apply markup and margin deliberately. Do not bury the markup inside line items where it cannot be defended.
- Kitchen remodel: $15k-$150k (full $45k-$80k)
- Bathroom remodel: $10k-$45k (mid $10k-$25k)
- Whole-home renovation: $19,500-$88,400
- On $60k kitchen: 20% markup = $12,000 to cover overhead + profit
Pricing structure best practices
The best GCs publish clear markup in their estimates: a line for direct costs, a line for overhead, and a line for profit. Customers accept a transparent fee structure far better than hidden contingency. Your overhead calculator should tell you the true cost per billable hour, and your margin calculator should tell you the right price to hit your target.
- Show direct costs, overhead and profit as separate lines
- Track overhead per billable hour with the overhead calculator
- Set the price with the margin calculator, not guesswork