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?

A typical UK tradesperson markup range is 15-25%, with the higher end applied to specialist items, extra handling, or a high risk of waste or breakage (Sleepless Tradesman, Material Markup Guide for Tradesmen UK, updated July 2026). Commodity items like cables and trunking usually sit at the lower end of that range.

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?

If you are VAT registered, reclaim the input VAT on what you paid the supplier, then charge 20% output VAT on your ex-VAT sell price. Always apply your markup to the ex-VAT cost, then add VAT last. Marking up a VAT-inclusive price double-charges the customer for tax and inflates your quote.

Is materials markup legal. Can customers object?

Yes, it is standard and legitimate. Markup covers your time sourcing, collecting, storing and warranting materials, plus the risk of returns. You are under no obligation to disclose your buy price. If a customer prefers to supply their own materials, you can accept but should exclude them from your workmanship guarantee.

Free Materials Markup Calculator

Calculate the right markup on materials. Enter your cost price and target margin to see the sell price and profit per job.

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.

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Materials Markup Calculator results

Fill in the details and select Calculate to see your figures.

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How to use the Materials Markup Calculator

1Enter the cost price of materials: the amount you pay your supplier, excluding VAT.
2Set your desired markup percentage. A typical UK tradesperson markup is 15-25% (Sleepless Tradesman, Material Markup Guide for Tradesmen UK, updated July 2026), higher for specialist or hard-to-source items.
3Toggle VAT on or off depending on whether you are VAT registered.
4Review 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.

Sell price = cost × (1 + markup% ÷ 100)

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.

Markup on cost always reads higher than the equivalent margin on price. If a customer or accountant talks in 'margin', convert first (margin = markup ÷ (1 + markup)) or you will under-price.

Typical UK benchmarks

Typical UK tradesperson materials markup	A typical markup range is 15-25% on materials (Sleepless Tradesman, Material Markup Guide for Tradesmen UK, updated July 2026)
Specialist / hard-to-source items	The higher end of the 15-25% range applies to specialist items, extra handling, or a high risk of waste or breakage (Sleepless Tradesman, Material Markup Guide for Tradesmen UK, updated July 2026)

Disclaimer

This tool gives an estimate for general guidance only, based on typical UK figures and the details you enter. It is not a formal quote, survey, or professional advice. Always confirm with a qualified tradesperson before relying on any figure, as regional prices, site conditions, and current standards vary.

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Your assistant sends the quotes, chases the invoices, books the work and keeps your customers updated. The first £10,000 Tradehand collects for a business carries no Tradehand fee. After that, Tradehand earns 5% of collected invoice payments. No monthly fee, setup fee, card fee or contract. One office hire costs about £25,000 a year, whether the invoices land or not.

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