Material Markup Calculator
Enter your material cost and markup percentage to instantly see your sell price, VAT total, and true gross margin. Includes industry benchmarks by trade for 2026.
Calculate your material sell price
Industry standard for most trades is 15–25%. Use the number input above to go higher.
VAT registered
Adds 20% VAT to sell price
Results
Markup amount
£40.00
Sell price (ex-VAT)
£240.00
VAT (20%)
£48.00
Total to client
£288.00
Gross margin %
16.7%
Gross margin = markup amount ÷ sell price (ex-VAT) × 100. A 20% markup yields a 16.7% gross margin — these are always different numbers.
Recommended markup by trade
Industry benchmarks for standard materials in the UK, 2026. Specialist or hard-to-source items typically warrant a higher markup.
| Trade | Typical markup range |
|---|---|
| Electrician | 20–30% |
| Plumber | 20–25% |
| Gas Engineer | 25–30% |
| Roofer | 15–20% |
| Plasterer | 15–20% |
| Carpenter | 20–25% |
| Builder | 15–20% |
| Painter | 20–30% |
Markup vs Margin explained
These two terms sound similar but are calculated differently. Confusing them is one of the most expensive mistakes in trade pricing.
Markup
Markup is the percentage added on top of your cost to arrive at your sell price. A 25% markup on £200 of materials gives a sell price of £250.
Use markup when setting your price from a known cost.
Margin
Margin is your profit expressed as a percentage of the sell price. A 25% markup yields only a 20% gross margin — not 25%.
Use margin when analysing financial performance across jobs.
Quick reference: markup to margin conversion
10% markup
9.1% margin
15% markup
13.0% margin
20% markup
16.7% margin
25% markup
20.0% margin
30% markup
23.1% margin
40% markup
28.6% margin
50% markup
33.3% margin
100% markup
50.0% margin
Markup is always a larger number than the equivalent margin. If a client asks what your margin is, they will expect a lower number than your markup percentage. Both are legitimate ways to describe the same profit — just make sure you are consistent in how you use them.
Frequently asked questions
What markup percentage should tradespeople add on materials?
Most UK tradespeople use 15-25% markup on materials. The industry standard is 20%, covering material sourcing time, storage risk, and tied-up working capital. Gas engineers often charge 25-30% on specialist parts.
What is the difference between markup and margin?
Markup is added to cost to get sell price (cost x 1.20 = 20% markup). Margin is profit as percentage of sell price — a 20% markup yields a 16.7% gross margin. Both matter: use markup for pricing, margin for financial analysis.
Should VAT be added on top of material markup?
Yes, if VAT-registered. VAT is charged on the total invoice including materials, markup, and labour. The client pays (materials + markup + labour) x 1.20. If your turnover is under £90,000, you are not VAT-registered and do not charge VAT.
Can I pass material costs to the client without markup?
Yes, but you then earn nothing on materials. Most tradespeople add markup to cover ordering time, van trips, and storage. A handling fee of 5-10% is standard even on cost-pass-through arrangements.
What markup covers my collection time?
If 2 hours collecting at £220 per day costs you £55, on £200 of materials you need 27.5% markup just to cover your time. The standard 20% often undervalues this cost.
Related tools and guides
QUOTE FASTER
Turn your markup into a professional quote in minutes.
Sleepless Tradesman generates accurate quotes — including materials, labour, and markup — for free. No card required.
No card · No commitment · Cancel anytime