What markup percentage should I use?

Most tradespeople apply 15-30% markup on total costs. This covers overheads not directly billed (admin time, vehicle wear, tools) and provides profit. Higher-skill specialist work can justify 25-40% markup.

How much waste allowance should I include?

Standard practice is 10% waste for most materials. Tiling and flooring may need 10-15% for cuts. Plasterboard typically needs 5-10%. Complex layouts with many cuts can require up to 20%.

Should I charge for travel time?

Yes - travel is a real cost including fuel, vehicle wear, and your time. Most tradespeople either include a flat call-out charge or add travel time at a reduced hourly rate. Be transparent about this in your quote.

When should I apply reduced rate VAT (5%)?

The 5% reduced rate applies to certain renovation and conversion work on residential properties, including converting a non-residential building to dwellings, renovating a dwelling empty for 2+ years, and installing energy-saving materials.

Should I include a contingency in my quote?

A 5-10% contingency is wise for larger or complex jobs where hidden issues may arise (e.g., rewires, bathroom refits). For straightforward jobs, you may not need one, but ensure your markup covers minor unforeseen costs.

How do I handle materials pricing for customers?

You can either pass materials through at cost (marking up labour only), add a small handling markup (10-15%), or include materials in a fixed-price quote. Be clear in your terms which approach you use.

TradeCalculator

Job Pricing Calculator

Calculate the total customer price for any trade job

Materials Cost

Labour Hours

Hourly Labour Rate

Markup

VAT Treatment

How We Calculate This

Enter your material costs and the calculator adds a waste percentage. Labour is calculated from hours multiplied by your rate. Travel, skip hire, and subcontractor costs are added. Your markup percentage is applied to the total cost to generate profit. A contingency can be included for complex jobs. Finally, VAT is calculated at the appropriate rate to give the total customer price.

Frequently Asked Questions

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Last updated: March 2026

All calculations are estimates. Verify with your supplier.