Margin calculator for tradies
Build a job quote from labour, materials and running costs, with a real margin on top, not a guess. Free, no signup.
Total quote price
$4,589
inc GST
$4,172 ex GST
- Labour
- $1,440
- Materials (inc. buffer)
- $1,320
- Overheads share
- $369
- Total cost
- $3,129
- Profit
- $1,043
25% margin = 33% markup on cost. This quote sits in the typical residential range (20-30%).
- Job cost
- $4,000
- +30%
- +$1,200
- You charge
- $5,200
Feels like a 30% profit. It's 23%.
Margin and markup aren't the same. Get it wrong and you pay for it on every job.
Add 30% to a $4,000 job and that's markup: you quote $5,200 and keep $1,200, which is 23%, not 30%. A real 30% margin means quoting $5,714. That's $514 more on the same job, gone because you used the wrong number. Markup is a percentage of your cost. Margin is a percentage of your price. Markup always looks bigger than the margin it actually leaves you.
| You add this markup | You actually keep this margin |
|---|---|
| 10% | 9% |
| 20% | 17% |
| 30% | 23% |
| 40% | 29% |
| 50% | 33% |
How the numbers work
Labour is each worker's hourly rate across the hours they're on site. Materials carry a 10% buffer for offcuts and the price rises that hit between quoting and invoicing. Overheads (insurance, vehicle, software, phone) get spread at one day's share per job day: your monthly total divided by 21.7 working days. Margin goes on as a true margin, then 10% GST on top.
It doesn't cover retentions, progress claims or variations. Price those in the contract, not here.
Registered for GST? Quote a homeowner the GST-inclusive total, that's the single number they pay. Not registered (under $75k turnover)? You don't add GST: switch the quote to ex-GST, then send that figure as your one price with no GST line on it.
Questions tradies ask
What margin should a tradie charge?
Residential work usually sits at 20 to 30%, commercial at 30 to 40%. The only margin that matters is the one still standing after the job runs over, so start at 25% and lift it for jobs with more travel, more risk, or more room for variations.
Margin or markup, which am I using?
If you add a percentage onto your cost, that's markup, and your real margin is smaller. A 25% margin is a 33% markup. This tool shows both, so you quote the one you meant to.
Should I quote inc or ex GST?
Quote homeowners the GST-inclusive total, it's the number they pay. Quote GST-registered businesses ex GST, they claim it back. Not registered for GST yourself? Don't add it at all, just quote your price.
How do I cover overheads in one quote?
Overheads don't bill themselves to a single job, so spread them: your monthly running costs divided by the days you actually work, times this job's days. Skip it and every quote quietly eats your own money.
My quote looks too expensive, now what?
Don't cut the margin, that's your wage. Cut the scope, change the materials, or walk. A job won at a loss costs more than the one you let go.
A margin only counts on jobs you win
BackPocket is the sales system for trades. It gets you found, catches the enquiries you're missing, and follows them up while you're on the tools. $0 setup, and you don't pay full price until three real enquiries have come in.
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