Materials Markup Calculator

FAQs

How do I choose a materials markup?

Set a rate that covers procurement time, handling risk, storage, returns admin and credit exposure, while supporting your target profit. Higher-risk items or fragmented orders may justify a higher markup than standard commodity lines.

Does this calculator use markup or margin?

It uses markup on cost. Markup is profit as a percentage of the cost price, while margin is profit as a percentage of the selling price.

Should I include VAT in the calculation?

Run the calculator net of VAT. Add VAT to the final selling price if applicable, so your markup and margin remain clear.

How do I handle supplier discounts, rebates and delivery?

Enter costs after any supplier discounts or rebates, then include delivery, small-order charges and expected wastage within the cost input or as separate lines before applying markup.

What if the client supplies materials?

Set materials markup to zero and charge a handling or coordination fee in prelims. Make this explicit in your quote and clarifications.