Free Materials Markup Calculator
Calculate the right markup on materials. Enter your cost price and chosen markup to see the sell price and profit per job.
Materials Markup Calculator results
Fill in the details and select Calculate to see your figures.
This materials markup calculator helps electricians price materials correctly. Many electricians confuse markup with margin. This tool shows both clearly. Enter your cost price and desired markup percentage to see the customer price, profit, and effective margin.
How to use the Materials Markup Calculator
- Enter your actual supplier cost. Exclude VAT only when you can recover it; otherwise include unrecoverable VAT.
- Set the percentage you intend to add to cost. Choose it from your sourcing time, handling and risk; the effective margin is calculated separately.
- Turn the standard-rate VAT toggle on only when your sale is subject to 20% output VAT.
- Review the sell price to quote your customer and the effective margin on the materials.
How the Materials Markup Calculator works
Markup is added on top of what you paid the supplier. It is not the same as margin. A fact that quietly costs trades money on every job when the two are confused.
- A consumer unit costs you £150 from the wholesaler (ex-VAT).
- Apply a 30% markup: £150 × (1 + 0.30) = £195 sell price.
- Your profit is £45. But as a share of the £195 price, that is a 23% margin: not 30%.
- To hit a true 30% margin instead, divide the cost by 0.70: £150 ÷ 0.70 = £214.
To convert markup to margin, use decimal rates: 0.25 ÷ (1 + 0.25) = 0.20, or 20% margin. Do not put the whole percentage 25 into that ratio.
See it in your business.
Frequently asked questions
What is the difference between markup and margin?
Markup is the percentage added to cost price (e.g. 30% on a £100 item = £130 sell price). Margin is the percentage of the sell price that is profit (e.g. £30 profit on a £130 sell price = 23.1% margin). A 30% markup equals a 23.1% margin.
What markup should electricians charge on materials?
There is no universal materials markup. Use your own sourcing time, transport, returns, waste and agreed responsibilities. Check the resulting margin rather than assuming the two percentages are the same.
Should I show materials as a separate line on my quote?
It depends on the job. For larger projects, itemising materials builds trust. For smaller jobs, a single inclusive price is often cleaner. Either way, make sure your markup covers your time sourcing and transporting materials.
How do I handle VAT on marked-up materials?
Use a consistent VAT basis. For standard-rated work, this tool's VAT toggle adds 20% to the selling price. If you are not VAT registered, include VAT you cannot recover in your cost and leave the output-VAT toggle off. Confirm the applicable VAT rate for your work.
How should I explain the materials price?
State the agreed materials specification and customer price in the quote. Explain sourcing, collection and handling where relevant. If the customer supplies goods, confirm specification, availability and responsibilities before pricing the work.
