Quote templatesMaterials markup calculator
Type what the materials cost you and your markup (or the margin you're after) to see what to charge, what you make, and the price including GST.
Charge = cost × (1 + markup ÷ 100). For a margin, charge = cost ÷ (1 − margin ÷ 100).
| Charge the customer (excluding GST) | $460.00 |
| Your profit on these materials | $60.00 |
| Markup on cost | 15% |
| Margin on price | 13.04% |
| Charge including GST (if registered) | $506.00 |
Markup is profit measured against your cost. Margin is the same profit measured against the price you charge. They're easy to mix up, and mixing them up means under-charging: if you want a 20% margin but add 20% markup, you only get a 16.67% margin.
| Markup on cost | Margin on price |
|---|---|
| 10% | 9.09% |
| 15% | 13.04% |
| 20% | 16.67% |
| 25% | 20% |
| 30% | 23.08% |
| 40% | 28.57% |
| 50% | 33.33% |
Going the other way, a 20% margin needs a 25% markup, and a 30% margin needs a 42.86% markup.
Materials for a job cost you $400.00 excluding GST, and you use a 15% markup:
The customer sees $460.00 for materials. Your cost and markup stay off the quote. QuoteAce does this for you: set your markup once, enter materials at cost, and it marks up materials only (never labour), then works out GST. Pro adds price lists with their own markup per item.
Markup is your profit as a percentage of what the materials cost you. Margin is the same profit as a percentage of the price you charge. A $100 item sold for $120 has a 20% markup but a 16.67% margin, because the $20 profit is measured against $100 for markup and $120 for margin.
There's no single right number. It depends on your trade, how much running around buying materials takes, the risk of returns and warranty claims, and what your local market will bear. Pick a markup that covers those costs and check it against what you're actually earning. QuoteAce starts new profiles at 15%, and you can change it to whatever suits your business.
Before. If you're registered for GST, start from the GST-exclusive cost of the materials, add your markup, then add GST once to the quote total. Marking up a GST-inclusive price means charging margin on tax.
Usually not. Most quotes show the materials at the price you're charging, not your cost and markup. QuoteAce keeps cost and markup in your own view and only shows the customer the marked-up price.
Labour is normally priced through your hourly or job rate, which should already include your profit and overheads. QuoteAce applies the materials markup to materials only, never to labour.
General information only, not financial or tax advice.
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