Work out your markup percentage, profit margin and gross profit from your costs and selling price. Switch between modes to calculate what you need.
| Trade | Materials Markup | Overall Markup |
|---|---|---|
| General Builder | 15-25% | 25-40% |
| Plumber | 20-35% | 30-50% |
| Electrician | 25-40% | 35-55% |
| Roofer | 15-25% | 25-40% |
| Kitchen Fitter | 20-30% | 30-45% |
| Plasterer | 15-20% | 35-50% |
| Painter & Decorator | 15-25% | 30-50% |
| Landscaper | 15-25% | 25-40% |
QuoteSmith automatically calculates your margins and presents a professional price breakdown to your customers. Paid plans.
Start Creating ProposalsMarkup and profit margin are two different ways to measure profitability, and confusing them is one of the most common pricing mistakes tradespeople make.
Markup is the percentage you add on top of your costs. If a job costs you £1,000 and you add a 50% markup, you charge £1,500. The formula is: Markup = ((Selling Price - Cost) / Cost) x 100.
Profit margin is the percentage of your selling price that is profit. Using the same example, your profit is £500 on a £1,500 sale, giving a margin of 33.3%. The formula is: Margin = ((Selling Price - Cost) / Selling Price) x 100.
The key is to know all your costs (materials, labour, van, tools, insurance, phone, admin time), add a healthy markup, and present it professionally. Tools like QuoteSmith help you build proposals that show the customer a professional price while you keep your margins healthy behind the scenes.
Common questions about markup and margins for tradespeople.
Markup is the percentage added to your cost price. Margin is the percentage of the selling price that is profit. A 50% markup gives a 33.3% margin. A 100% markup gives a 50% margin. Markup is always a higher number than margin for the same job.
Most UK tradespeople use 20-50% markup on materials and 30-60% overall. Specialist trades like electricians and plumbers often command higher markups. The right markup depends on your overheads, local competition, and the complexity of the work.
Markup = ((Selling Price - Cost) / Cost) x 100. If your cost is £800 and you charge £1,200, the markup is ((1200 - 800) / 800) x 100 = 50%.
Yes. Many successful tradespeople apply 15-30% on materials (covering ordering, delivery, wastage) and a higher markup on labour for overheads and profit. This gives better margin control.
20% markup (which is only a 16.7% profit margin) is usually too low for most trades once you account for all overheads. Most profitable trade businesses aim for 30-50% overall markup as a minimum.
Turn your job details into a branded PDF proposal with professional pricing. Paid plans - no credit card required.
Start Creating Proposals