Site maths
Job estimate & VAT
- where
- base cost (£)
- quantity
- unit price (£)
- labour days
- day rate (£)
- other costs (£)
- quote ex VAT (£)
- markup (%)
- quote inc VAT (£)
- VAT rate (%)
Explain this equation
Builds a simple job price from materials, labour and other costs, then adds your markup and VAT.
q is the quantity of material and u its unit price. D is labour days and r the day rate. Co covers anything else such as hire or delivery. B is the base cost. m is the markup percentage, giving the quote before VAT, Qnet. v is the VAT rate, giving the quote including VAT, Qgross.
The base cost simply adds materials, labour and extras. Each percentage step multiplies by (1 + percentage/100). Markup is applied to cost, then VAT is applied to the marked-up price.
1000 items at £0.80, 5 days at £220 and £100 extras is £2000. 10% markup gives £2200, and 20% VAT brings it to £2640.
Watch out: markup is not margin. A 10% markup gives a margin of about 9.1% on the selling price. The calculator does not decide whether VAT 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
This is a calculation aid, not a structural design or compliance certificate. Every default is an example, not a specification for your project.