Free Tool · Markup Calculator · 2026

Tradie Markup
Calculator

Enter your job costs and target markup to see your sale price and gross margin. Most tradies set a markup but don't know what margin it delivers — this shows you both.

Job costs (ex-GST)

Markup

25–35% is typical for residential trade work in Australia

Markup vs margin — what's the difference?

This is the most common maths mistake in the trades. Markup is the percentage you add on top of cost. Margin is the profit expressed as a percentage of the sale price. They're not the same number — and confusing them can mean you're consistently making less than you think.

Example: a job costs you $10,000. You apply a 25% markup → you charge $12,500. Your gross margin is $2,500 / $12,500 = 20%, not 25%. If your target is 25% margin, you actually need a 33% markup.

Markup %Resulting margin %On $10,000 costOn $25,000 cost
10%9.1%$11,000$27,500
15%13.0%$11,500$28,750
20%16.7%$12,000$30,000
25%20.0%$12,500$31,250
33%24.8%$13,300$33,250
43%30.1%$14,300$35,750
50%33.3%$15,000$37,500

What markup should Australian tradies charge in 2026?

Residential building and renovation: 20–35% markup
General contractors and builders typically target 20–30% gross margin (25–43% markup). Smaller residential jobs should sit at the higher end because coordination time is a larger proportion of the job. Larger volume projects can run tighter.
Plumbing and electrical: 25–40% markup on labour
Licensed trade businesses need to cover higher insurance, licensing and compliance costs. A plumber charging $145/hr with 25% overhead loading needs their markup to cover those overheads on top of their desired take-home. 30–35% gross margin is a sustainable target.
Materials markup: separate from labour
Most tradies apply different markup rates to materials and labour. Materials typically carry 15–30% markup. Labour carries a higher rate. If a client asks to supply their own materials, you lose the materials margin — factor that into your labour rate for those jobs.
Subcontractor markup: 10–20%
When you engage a subcontractor and manage their work, it's standard to mark up their invoiced rate by 10–20% to cover your coordination time, risk and responsibility for their work quality.

Skip the manual work

Apply your markup automatically on every FMN quote.

Frequently asked questions

What is the standard markup for tradies in Australia?

Most Australian trade businesses apply a 25–43% markup on job costs, which delivers a 20–30% gross margin. The right number depends on your trade, overheads and job size. Smaller, complex jobs should carry higher markup than larger volume work. The key is setting your markup based on your actual cost structure, not what others charge.

What's the difference between markup and margin?

Markup is added on top of cost. Margin is profit as a percentage of sale price. A 25% markup gives a 20% margin — not 25%. Most tradies who think they're making 25% margin are actually making 20%. Use the calculator above to see exactly what your markup delivers in terms of margin.

Should I use the same markup for materials and labour?

No — most trade businesses apply different rates. Materials typically carry 15–25% markup. Labour carries a higher rate (25–40%) because it includes your overhead loading, risk and expertise. When pricing a job, calculate materials and labour margins separately to make sure neither is being subsidised.

How do I calculate markup as a percentage?

Markup = (Sale price - Cost) / Cost × 100. So if your cost is $8,000 and your sale price is $10,000, your markup is $2,000 / $8,000 × 100 = 25%. Your margin on the same job is $2,000 / $10,000 × 100 = 20%.