Free Quote Markup Calculator for Tradespeople — Profit Margin

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Currency:

Total cost (£) — labour + materials

Desired profit margin (%)

Result

Total cost—

Profit amount—

Profit margin—

Markup on cost—

Selling price (ex. tax)—

💡 Margin vs markup: A 30% margin means profit is 30% of the selling price. A 30% markup means profit is 30% of the cost. They give different results — this calculator uses margin (industry standard for pricing).

Margin vs markup — what's the difference?

These two terms are often confused, and getting them wrong can mean undercharging significantly.

Profit margin

Margin = profit ÷ selling price. A 30% margin on a £1,000 job means £300 profit and £700 cost. This is the standard way to express profitability in business.

Markup

Markup = profit ÷ cost. A 30% markup on £700 cost gives a selling price of £910 — not £1,000. If you use markup language but calculate with margin formulas (or vice versa), you will consistently underprice your work.

What margin should tradespeople use?

A healthy net profit margin for a self-employed tradesperson is typically 20–35% after all costs. Below 20% is tight — any unexpected cost can wipe out your profit on a job. Above 35% is excellent and sustainable for growth.

Charging enough — but is every invoice actually getting paid?

Knowing your margin is step one. Wrencher makes sure the invoice goes out promptly, the client gets a reminder if they are late, and your dashboard shows you exactly what is outstanding.

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