Electrical
Electrical Parts Markup Calculator
Convert the landed cost of electrical parts into a selling price and see the margin that markup actually produces.
Result
Markup is measured against your cost, margin against the price you charge. A 50% markup is a 33.3% margin, not a 50% one. Pricing off the wrong one is the most common way a job that looked profitable turns out not to have been.
Get a Free Business AuditWhat moves the number
- Include freight or acquisition costs that belong to the supplied part.
- Use actual purchase discounts rather than an unrelated list price.
- Markup is applied to cost; margin is then measured against the selling price.
Where this one goes wrong
A percentage on a cheap component may not recover the work of sourcing and collecting it. Conversely, a high-value panel can generate substantial markup without covering installation risk. Keep the parts-pricing decision separate from labour and the full job economics.
Questions
About this calculator
Should returned unused parts reduce the cost?
Use the net cost attributable to the job, including any applicable restocking charge. Do not charge the same purchase to two jobs after moving stock between them.
Does parts profit equal job profit?
No. The difference shown relates only to the cost entered. Installation time, delivery and company overhead still need recovery elsewhere.
Can I enter a desired margin as markup?
They have different denominators. Use the resulting margin to check the effect, or use a margin-based pricing calculation when margin is the target.
The formula
price = cost x (1 + markup%); margin = profit / price
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How to use this calculator
- Your cost ($). Enter your own figure; the page starts at $300.
- Markup on cost (%). Enter your own figure; the page starts at 45%.
The result updates as you type, so you can try a figure, see what it does to price, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Your cost | $300 |
| Markup on cost | 45% |
What comes out
| Result | Value |
|---|---|
| Price main result | $435 |
| Gross profit | $135 |
| Margin that gives you | 31.0% |
A 45% markup on $300 prices the job at $435, which is 31.0% margin, not 45%.
How sensitive the answer is
Holding everything else steady and changing only your cost, this is what happens to price. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Your cost ($) | Price |
|---|---|
| $150 | $217.50 |
| $225 | $326.25 |
| $300 example above | $435 |
| $450 | $652.50 |
| $600 | $870 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Your cost ($)
- A money amount, starting at $300.
- Markup on cost (%)
- A percentage, between 0 and 500, starting at 45%.
What the results tell you
| Result | What it is |
|---|---|
| Price | The headline result. A money figure. |
| Gross profit | A money figure. |
| Margin that gives you | A percentage. |
Before you rely on this number
Conductor sizing, voltage drop and load figures are governed by code, and the code takes precedence over any calculator. Ambient temperature, conduit fill, continuous load factors and the specific installation all change the answer. Treat this as a first pass, not a design.
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.