Markup Calculator Australia

Markup is the percentage added to the cost price of goods to arrive at the selling price, whereas margin is the percentage of the selling price that is profit. For example, if a plumbing fixture costs you $100 and you sell it for $150, your profit is $50. Your markup is 50% ($50 profit divided by $100 cost), but your margin is 33.3% ($50 profit divided by $150 sell price). Tradies often mix these up, which can hurt their bottom line.

Material markups typically range between 15% and 50% depending on your trade, the volume of the project, and how easy the item is for the client to price-check. For small, specialised electrical or HVAC fittings, sparkies and fridgeys often charge 30% to 50% markup. For major building materials like timber, steel, or sand, a markup of 15% to 25% is more common. It's all about balancing a fair profit with what the local market will tolerate.

To convert a desired profit margin into a markup percentage, use the formula: Markup % = (Margin % / (100 - Margin %)) * 100. So, if your business coach says you need a 30% margin on all materials to stay profitable, you'll need to mark them up by 42.86% when you quote. If you only add a 30% markup, you'll end up with a 23% margin instead, which leaves a lot of cash on the table.

Yes, absolutely. Your labour rate should cover your time, expertise, and personal overheads (like super, tool wear, and insurance), while your material markup covers the time spent sourcing, picking up, transporting, and taking responsibility for those materials. If a fitting fails, you're the one who has to go back, remove it, and swap it over under warranty—that risk is exactly why material markup exists.

You should calculate your markup on the GST-exclusive cost of the materials, add that markup to get your GST-exclusive sell price, and then add 10% GST on top of that final amount. If you do it the other way around, you risk getting your numbers tangled when it's time to claim input tax credits on your BAS. Our calculator handles this for you, showing both ex-GST and inc-GST final quote totals.

For most general builders, carpenters, and painters, a 20% to 30% markup is the sweet spot for general materials. However, if you are sourcing small parts, custom fixtures, or dealing with suppliers that don't offer tradie discounts, 30% might not cover the time you spend driving to the trade desk and waiting in line. On larger, high-value orders, you can drop the markup slightly, but for small items, you should aim higher.

Electricians generally apply a markup of 25% to 50% on cables, switches, powerpoints, and switchboards. Since sparkies spend a lot of time organising specific fixtures and dealing with strict compliance standards, a healthy markup ensures they are compensated for their expertise. For high-volume projects, the markup might slide down to 15% to 20%.

Plumbers typically charge a markup of 25% to 45% on materials like copper pipes, brass fittings, valves, and hot water units. Plumbers bear high risk—if a pipe leaks behind a wall, the rectification costs can be massive. This risk premium is built into their material markup to protect their business from expensive callbacks.

Generally, no. Most tradies provide a single "fixed price" or "lump sum" quote that bundles materials and labour together, or shows a single line item for "Supply and install". Breaking down your exact markup on a quote only invites micro-management from clients who might try to price-check you on Google, forgetting that they aren't paying for the item itself—they are paying for you to select, source, transport, and warrant it.

With supply chain fluctuations in Australia, you should always put a validity limit on your quotes (e.g., "valid for 14 days" or "valid for 30 days"). For large orders of timber, steel, or copper, state in your terms that prices are subject to supplier increases at the time of order. Using a healthy markup also gives you a small buffer so you don't lose money if a supplier raises their price by 2% overnight.

If you hire a subcontractor (subbie) to do a portion of a job (like hiring a plasterer for a carpentry job), you should apply a markup of 10% to 20% on their rate. This covers the administrative time you spend scheduling them, coordinating the site, managing client communications, and taking on the liability for their workmanship.

Yes, it is completely legal. In Australia's free-market economy, sole traders and contractors are allowed to set their own prices and margins. The only exception is if you are operating under a specific government contract or insurance panel that mandates a capped "cost-plus" markup, or if you engage in misleading conduct (like lying about the actual wholesale price on a strictly "cost-plus" contract).

If a client insists on supplying their own fittings (like buying their own tapware or downlights online), you should make it clear in your contract that you charge a premium labour rate to cover the installation, and that you offer absolutely no warranty on the item itself. If the item fails or parts are missing, you will charge them your hourly rate to diagnose, remove, and return to site once they get a replacement.

Yes, you should. Sourcing and receiving deliveries takes time, and you often have to sign for them or inspect them for damage. Any freight or delivery charges you pay to suppliers should be treated as part of the total cost price of the materials and marked up accordingly. This ensures you cover all secondary costs of getting the materials to the job site.