Free Tool
Markup & Margin Calculator
Calculate selling price from cost and markup, convert between markup and margin, or work backwards from a selling price.
Markup vs Margin Explained
Markup is calculated as a percentage of your cost. Margin is calculated as a percentage of your selling price. They describe the same profit in different ways.
| Markup | Margin | Example (£100 cost) |
|---|---|---|
| 20% | 16.7% | £120 |
| 25% | 20% | £125 |
| 30% | 23.1% | £130 |
| 40% | 28.6% | £140 |
| 50% | 33.3% | £150 |
Common Trade Markups
Materials markup varies by trade. Plumbers often mark up fittings and pipe by 25–35%. Electricians typically add 30–40% on cable and accessories. Builders might use 15–25% on bulk materials. Always factor in your overheads — van costs, insurance, tools, and your own time — when setting your markup.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added on top of your cost price. Margin is the percentage of the selling price that is profit. For example, if you buy materials for £100 and sell at £150, your markup is 50% (£50 ÷ £100) but your margin is 33.3% (£50 ÷ £150).
What markup should tradespeople charge?
Most UK tradespeople apply a markup of 20–50% on materials, depending on the trade and complexity. Plumbers and electricians typically mark up materials 25–40%. Builders working on larger projects may use 15–25%. Your markup should cover overheads (van, insurance, tools) and profit.
How do I convert markup to margin?
The formula is: Margin = Markup ÷ (1 + Markup). For example, a 50% markup (0.50) gives a margin of 0.50 ÷ 1.50 = 33.3%. Conversely, Markup = Margin ÷ (1 - Margin).
Should I charge VAT on top of my markup?
If you are VAT registered, you charge VAT on the total selling price (cost + markup). The VAT is separate from your markup. For example, materials cost £100, you add 30% markup (£130), then add 20% VAT (£156 total). The customer pays £156, you keep £130 (minus VAT on your costs).
Build markup into every quote
Traddie lets you set default markups on materials so every quote is priced right, automatically.
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