Running the business
Job price from m² rate, materials markup and VAT
- where
- price before VAT (£)
- area (m²)
- labour rate (£/m²)
- materials cost net of VAT (£)
- markup on materials (%)
- VAT (£)
- VAT rate (%)
- price including VAT (£)
Explain this equation
Builds a quote from area, a rate per m², marked-up materials and VAT. Use it for quick, consistent pricing.
A is the area and r the labour rate per m². Mc is the materials cost before VAT and μ the markup on materials in percent. N is the price before VAT, v the VAT rate in percent, V the VAT and T the total.
Labour and materials are priced separately and added. The bracket (1 + μ/100) applies the markup to the materials; multiplying by v/100 gives the VAT, which is added on top.
Sense check: 40 m² at £12 is £480; £150 of materials with 15% markup is £172.50; together £652.50, plus 20% VAT of £130.50, £783 in total.
Watch out: set the VAT rate to 0 if you are not VAT-registered. Do not include VAT in the materials cost if you can reclaim it.
Builds a quote from area × rate plus marked-up materials, with VAT added if you are VAT-registered.
Enter your values to see the result.
Good to know
The UK standard rate of VAT is 20%. You must register for VAT when taxable turnover goes over £90,000 in any rolling 12 months (GOV.UK, checked November 2026); below that, registration is voluntary and you charge no VAT (set the rate to 0). Some work is charged at reduced or zero rates (for example certain energy-saving installations or new-build dwellings) and work for other VAT-registered contractors under CIS may fall under the domestic reverse charge, so check HMRC guidance for the job.
Common mistake
Quoting a domestic customer a price "plus VAT" without making it clear. Consumers expect VAT-inclusive prices.
Limits
Simple pricing build-up. Does not include travel, waste disposal, access equipment, overheads or contingency unless you add them into the rate or materials.
Sources
Results are calculations from the published methods and manufacturer figures shown, and depend on the data you enter. Always follow the manufacturers’ system and product data, BS 8212, BS EN 13914 and Building Regulations. Coverage rates vary by product, background and thickness. Check prices, VAT and CIS rules with your own records and HMRC.