What is a typical materials markup?

Most tradespeople mark up materials by 15-30%. This covers the time spent sourcing, collecting, transporting, and storing materials. Some apply a flat handling fee instead. Higher markups (25-30%) are common for small, specialist items.

Should I show materials separately on invoices?

It depends on your pricing model. Some tradespeople list materials at cost and mark up labour only. Others provide a single fixed price. Being transparent about material costs builds trust, but a fixed price is simpler for the customer.

How do I handle VAT on materials?

If VAT-registered, you buy materials ex-VAT (reclaiming input VAT) and charge the customer your marked-up price plus 20% VAT. If not VAT-registered, you pay VAT on purchases and cannot add VAT, so your trade prices are effectively higher.

Is my markup competitive if customers can buy cheaper online?

Your markup covers sourcing knowledge, trade-quality products, correct quantity calculation, delivery/collection time, and the guarantee that materials are fit for purpose. Communicate this value - most customers accept a reasonable markup for convenience.

Should I include delivery in the materials cost?

Yes, delivery is a real cost. Either include it in your overall quote or itemise it separately. If you collect materials yourself, factor in your travel time and vehicle costs - this is part of the service you provide.

TradeCalculator

Material Markup Calculator

Calculate your marked-up materials price and compare against retail

Trade Price (per unit)

Retail Price (per unit)

Markup

Quantity

VAT Handling

How We Calculate This

Enter your trade price (ex or inc VAT), desired markup percentage, and quantity. The calculator applies your markup to the trade cost, adds any delivery and handling charges, then calculates the customer price with VAT if applicable. It also compares your final price against the retail price to show the customer is still saving compared to buying direct.

Frequently Asked Questions

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Last updated: March 2026

All calculations are estimates. Verify with your supplier.