Question 1

What is the difference between margin and markup?

Accepted Answer

Margin is the percentage of the selling price that is profit. Markup is the percentage added to the cost price. A 50% markup equals a 33.3% margin. Margin is always lower than markup for the same job.

Question 2

What profit margin should tradespeople aim for?

Accepted Answer

Most tradespeople aim for 20–40% profit margin depending on the trade and job type. Emergency callouts and specialist work can command higher margins. Materials-heavy jobs typically have lower margins.

Question 3

How does TradeTally help track profit margins?

Accepted Answer

TradeTally tracks your income from invoices and your expenses per job. The dashboard shows your overall profit and you can export figures for SA103F filing. From £19/month.

Profit Margin Calculator for Tradespeople

Frequently asked questions

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