Site maths
Job estimate & VAT
- where
- base cost
- quantity
- unit cost
- labour days
- day rate
- other costs
- net quote
- markup (%)
- gross quote
- VAT rate (%)
Explain this equation
This builds a quick job price from materials, labour and other costs, adds a markup and then VAT.
q is the quantity and c the unit cost of materials. d is the number of labour days and r the day rate. o is any other costs. B is the base cost. m is the markup percentage, Q_net is the quote before VAT, v is the VAT rate and Q_gross is the quote including VAT. The calculator also shows the VAT amount.
The base cost is the sum of materials, labour and extras. Markup is added as a percentage of cost, then VAT is added as a percentage of the marked-up price. Each (1 + %/100) term adds that percentage.
1000 bricks at 80p, 5 days at £220 and £100 extras is £2000. Add 10% markup to get £2200, then 20% VAT for £2640.
Watch out: markup is not margin. A 10% markup is only about a 9% margin on the selling price. Enter the VAT rate that actually applies.
Combine material and labour costs, add markup, then the entered VAT rate.
Enter your values to see the result.
Good to know
Markup is not margin. Enter the VAT treatment applicable to the work; the calculator does not decide tax eligibility. Costs are estimates in GBP.
Sources
- Geometry / arithmetic
Estimates are not design approval or British Standards compliance checks. Structural arch, retaining-wall, wind, foundation, lintel and masonry-capacity design are not performed. Use the project engineer’s specification.