Materials Markup Calculator
Convert cost, markup and margin — including wastage and your collection time.
Who it is for: UK self-employed tradespeople and small trade contractors.
What you get: Sale price, profit on materials, margin achieved and break-even markup.
How this calculation works
This tool runs in your browser. No data is sent to our servers. Below are the assumptions used.
- Handling time is priced at your hourly rate, because collecting materials is unpaid work otherwise.
- Wastage is applied to the invoice cost of materials only.
Hypothetical worked examples
To help you understand the outputs, here are illustrative examples generated using the same logic.
Illustrative example 1: A sole trader working 30 billable hours per week with £18,000 in annual overheads needs to recover £11.54 per hour before any profit is added. If they want a £35,000 target owner pay before personal tax, the true hourly rate rises to around £28–£32 based on the inputs entered.
Illustrative example 2: A small team with a van, premises and two employees requires a higher day rate to cover shared operational costs. The calculator shows the break-even point clearly so the business owner can set a rate that covers all costs before profit is considered.
Questions people ask
- How much markup should I add to materials?
- Markus's working assumption is that 10–20% on trade-bought materials is a reasonable starting point for most domestic work, rising to 20–30% where you are sourcing, storing and managing materials on behalf of a customer. This is not a national standard — it is a practical rule of thumb. The right figure depends on your trade account discounts, the time you spend sourcing and the risk you carry if prices change between quote and delivery.
- Is markup the same as margin?
- No. Markup is the profit expressed as a percentage of the cost price. Margin is the profit expressed as a percentage of the selling price. A 20% markup on £100 of materials gives a £120 selling price and a 16.7% margin. If you aim for a 20% margin but apply a 20% markup, you will consistently earn less than you intend.
- Should I charge for the time it takes to collect materials?
- Yes. Time spent at the merchant, driving to a supplier or waiting for a delivery is time you cannot sell to anyone else. The calculator includes a handling-time field for this reason. If you do not charge for it, you are effectively subsidising the customer's materials with your own labour.
- What wastage percentage should I use?
- Wastage depends on the material and the job. Markus's working assumption is 5–10% for standard cut-to-length materials such as timber, plasterboard and pipe, rising to 10–15% for tiling and brickwork where cuts are unavoidable. Always check the manufacturer's recommended wastage allowance for the specific product.