Tradie Toolbox · Drawer 2
Job quote margin calculator
Work out what a job really costs you, pick a markup or a margin, and see the price, the GST and what you'll actually keep before you send the quote.
What the quote looks like
Quote price (including GST)
$0
- Your total cost, with contingency$0
- Price before GST$0
- GST on top$0
- Profit on the job$0
- Margin (profit as a share of price)0%
- Markup (profit as a share of cost)0%
- Profit per labour hour$0
Numbers tight? See what funding could do
If the result says the gap, the kit or the quote needs a hand, a 60-second enquiry shows what's possible. No credit check when you first enquire, and a real person reads it.
Why markup and margin trip up good tradies
Most tradies think in markup: "I put 20% on the materials". Accountants and lenders think in margin: "What share of the price is profit?". They're different numbers, and mixing them up is one of the quietest ways to lose money. A 20% markup leaves you with a margin of only 16.7%. If your business needs a 25% margin to cover everything it costs to run, a 25% markup falls short.
| If you add this markup | You actually earn this margin |
|---|---|
| 10% | 9.1% |
| 20% | 16.7% |
| 25% | 20% |
| 33.3% | 25% |
| 50% | 33.3% |
| 100% | 50% |
Count the real cost of an hour
The labour line should be what an hour costs you, which for an employee is wages plus super, workers compensation, leave loading and payroll costs, and for the owner is the wage you'd pay a replacement. Then add an overhead per hour. Divide a year of ute costs, insurance, phone, software, accounting, tool replacement and admin by the hours that crews actually spend on jobs, not total hours worked. The gap between the two is the reason busy tradies can feel broke.
Contingency, variations and GST
Contingency is the cushion for the things you can't see on the day you quote: hidden rot, a council hold-up, a supplier price move, a customer who changes their mind. Five to ten per cent suits many jobs, and unknown renovations may need more. Put it in the price and not in your head.
If you're registered for GST, you add 10% to the price and claim back the GST in your materials, so enter costs excluding GST. The ATO sets the registration turnover threshold; check ato.gov.au for the current rules for your situation. To plan for the tax itself, use the GST and BAS Set-Aside Planner.
Using the result
Look at profit per labour hour. If it's lower than what a good employee costs you to replace, the job is paying you less than working for someone else. Check the margin against the cash gap too: a profitable job on 60-day terms can still empty the account, which the Cash Flow Gap Planner will show you. If the jobs are good and the cash is the problem, a 60-second enquiry is the next step. There's no credit check when you first enquire, a real person reads it, and your details stay with us.
Questions about this tool
What's the difference between markup and margin?
Markup is the percentage you add on top of your cost. Margin is the share of the final price that's profit. Adding a 25% markup to a $4,000 cost gives a $5,000 price, but the profit of $1,000 is only 20% of that price, so the margin is 20%.
What labour rate should I enter?
Enter what an hour of work costs you, not what you charge. For an employee, that's wages plus super, workers compensation and leave loading. For yourself, use the wage you want to be paid, otherwise the quote pays for everything except you.
What is overhead per labour hour?
It's your share of the costs that don't sit on any one job: the ute, insurance, phone, software, tools wear, accountant and admin time. Add up a year of those costs and divide by the hours your crew actually works on jobs. Most tradies underestimate it.
Should contingency be on every quote?
On any job with unknowns, yes. Hidden rot, access problems, variations that never get signed and supplier price moves are normal. A small contingency in the price is easier than arguing for it afterwards. On a simple repeat job, you may need very little.
Does this calculator add GST correctly?
If you're registered for GST, the calculator adds 10% to your price excluding GST. Enter your costs excluding GST, because you claim the GST on materials back as a credit. If you aren't registered, choose the no-GST option.
Our promises
No credit check to enquire
Ask what's possible without leaving a mark on your credit file. A credit check only comes up once you've decided to go ahead.
No spray and pray
Your details don't get blasted around a pile of lenders. One real person looks at your situation and matches it properly.
A real person on your job
Someone who reads enquiries for a living calls you back. Fill the form in accurately and we'll point you the right way first time.
More tools in the box
Cash Flow Gap Planner
Weekly money in and out with your invoice terms. See the gap, the lowest point and how many weeks of runway you have.
Open the tool →GST and BAS Set-Aside Planner
What to park from each invoice so the quarterly BAS and PAYG never ambush you.
Open the tool →Equipment Payback Calculator
Kit cost against extra jobs and hours saved. How many months until it pays for itself?
Open the tool →Ute Running Cost Calculator
Fuel, rego, insurance, servicing, tyres and depreciation into a cost per week and per kilometre.
Open the tool →Loan Readiness Checklist
Tick off the documents lenders ask for, answer a short quiz and get a readiness note.
Open the tool →Done the sums? Let's talk about the money.
One short enquiry. No credit check when you first enquire, a real person reading it, and your details staying with us rather than going out to a pile of lenders.
No credit check to enquire
No spray and pray
A real person on your job