Back to tools

2 min tool

Garage Parts Markup Calculator

Work out the selling price, profit and margin on parts before adding them to an invoice.

Useful for

  • Pricing one-off parts that are not already in stock
  • Checking the profit on brake pads, sensors, fluids or service parts
  • Explaining internal parts margin without showing it on the customer invoice

Example parts markup calculation

Cost price £30.00 with 30% markup gives a selling price of £39.00, gross profit of £9.00 and a gross margin of about 23.1%.

Cost

£30.00

Markup

30%

Sell price

£39.00

Profit

£9.00

Most workshops add a markup to parts, but doing the maths on a phone while building an invoice is slow and easy to get wrong.

Use this calculator to turn a cost price into a sensible invoice price. VAT is kept separate because VAT is not your profit.

Want this built into your invoices?

Mechanics Hub can store stock cost, invoice price and profit snapshots so you do not need a separate calculator for every job.

Start free

FAQ

Is markup the same as margin?

No. Markup is added on top of cost. Margin is profit as a percentage of the selling price. A 30% markup on a £30 part gives a £39 selling price, £9 profit and roughly 23.1% margin.

Should VAT be included in profit?

No. VAT collected from the customer is not business income. Profit and margin should normally be calculated on the price excluding VAT.

Can I use this for labour?

You can, but labour is usually better treated as a separate labour rate or service item. Parts markup is most useful when the business buys a physical part and resells it.