Margin vs markup
Price = job cost / (1 - (overhead % + profit %))
Markup = price / cost - 1
Markup = price / cost - 1
Adding 30% on top of cost gives only a 23% margin. Many roofers underprice this way. Price from margin, not markup.
Speed up takeoffs
- Measure squares with the roof square footage calculator.
- Count bundles, starter and ridge with the shingle calculator.
- Check pitch charges with the roof pitch calculator.
Want a pro to confirm these numbers?
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Sources and further reading
- National Roofing Contractors Association (NRCA)
- Asphalt Roofing Manufacturers Association (ARMA)
- Insurance Information Institute: homeowners insurance basics
Frequently asked questions
How do roofers price a job?
Most build up material, labor, tear-off, disposal and extras, then add overhead and profit as a margin on the selling price.
What is a good profit margin for roofing?
Many residential roofers target roughly 20% to 40% gross margin, depending on overhead and market.
What is price per square?
The total bid divided by the number of roofing squares. It makes quotes easy to compare.