What markup percentage should I use?

Typical Australian trade markup is 15–35% on cost. This needs to cover your overheads, warranty provisions and profit. Your accountant can help you calculate your minimum viable markup based on your actual cost structure.

Is GST added on top of markup?

Yes — GST is always added last, on the total marked-up amount. Never apply GST before markup.

Should I quote labour and materials separately?

In AU, you can quote all-inclusive, but itemising labour and materials separately is better practice for variation management and protects you in disputes.

Job Quote Calculator — Free Tradies Calculator

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Client's standing in the kitchen pointing at tiles — they want a rough number before you even get the tape out. You need a defensible figure in 60 seconds.

Job Quote Calculator

Business

Hourly rate ($)

Hours to complete

Materials cost ($)

Materials markup (%)

Include GST (10%)?

Quote = (Hours × Rate) + (Materials × Markup) + GST Always provide itemised quotes in writing. Include call-out fee, waste disposal and any after-hours rates separately.

Reference: Fair Work Australia · ATO — GST for Business

ℹ️ Results are estimates for planning purposes. Verify with current standards and a qualified professional.

1 What this calculator does

Builds a job quote from labour hours, material costs and your markup percentage. Adds GST (AU) or applicable sales tax and generates a breakeven check. Outputs a total you can stand behind.

2 Formula & professional reasoning

Quote = (Labour + Materials) × (1 + Markup%) × (1 + Tax%)

A professional quote starts from your true cost base: all labour at your full award/charge-out rate, plus all materials at cost. Your markup covers overheads, warranty risk and profit. GST is then applied on top of the marked-up price. The order of operations matters — marking up before adding tax is correct.

3 Worked examples

⚠️ Illustrative example only — not clinical or professional instruction.

Basic

Small repair job

Given: Labour: 4 hrs × $85 = $340 · Materials: $120 · Markup: 20%

Working: ($340 + $120) × 1.20 × 1.10 = $460 × 1.20 × 1.10

Answer: $607.20 inc GST

💡 $552 ex GST. Your margin: $92 after costs — about 20% gross.

Standard

Bathroom renovation

Given: Labour: 24 hrs × $95 = $2,280 · Materials: $3,800 · Markup: 25%

Working: ($2,280 + $3,800) × 1.25 × 1.10

Answer: $8,360 inc GST

💡 Ex GST: $7,600. Margin: $1,520 — 25% on cost.

Advanced

Multi-trade project

Given: Labour: 80 hrs × $90 = $7,200 · Materials: $12,400 · Markup: 30%

Working: ($7,200 + $12,400) × 1.30 × 1.10

Answer: $28,028 inc GST

💡 Always itemise by trade in the written quote. List exclusions explicitly.

4 Sanity check

Typical trade markup

15–40% on cost

Margins vary by trade: plumbing 25–35%, painting 20–30%, electrical 20–35%.

Labour as % of quote

30–60% typical

Labour-heavy jobs: tiling, plastering. Material-heavy: cabinetry, flooring.

GST

10% on all supplies and labour in AU

US: sales tax on materials only in most states — labour often exempt.

Quote vs estimate

Quote is binding; estimate is indicative

If quoting, inspect the job first. Estimates need a contingency allowance.

5 Common errors

Error	Cause	Consequence	Fix
Forgetting overheads in labour rate	Using wages only, not true charge-out rate	Quote loses money on every hour	Charge-out rate = wages + super + tools + insurance + admin ÷ billable hours
Materials at retail	Not accounting for supplier markup	Margin eaten by material cost blowout	Use your actual supplier cost, not retail price
No contingency on variations	Fixed-price quote without scope clarity	Every variation erodes margin	Include explicit exclusions and a variation clause in your written quote
Forgetting GST	Quoting ex-GST to client who expects inc-GST	Client dispute on final invoice	Always state clearly whether your quote is ex-GST or inc-GST