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Price increase calculator

Materials or wages gone up? Work out the new price you need to keep the same profit margin, or the same profit in pounds, and the percentage rise to put to customers.

Two ways to put prices up

Keep the margin: if your costs rise 8%, put your price up 8%. Your profit in pounds goes up too, which matters when inflation also hits your own living costs. Keep the pound profit: add only the extra cost to the price. It's a smaller rise, but your margin shrinks, so you need more work for the same return next time costs rise.

Worked example

A £500 job costs you £350, so you make £150 (a 30% margin). Costs rise 8% to £378. Keeping the old price leaves £122 (24.4%). To keep 30%, charge £540 (+8%). To keep £150, charge £528 (+5.6%).

Telling customers

For quotes that run for weeks, a clear price-change clause protects you when material prices move: build one with the price-change clause generator. Ask ChatGPT to draft a short, polite price increase message using the prompts in ChatGPT prompts for tradespeople.

Check how much margin you really make with the markup and margin calculator, and how many jobs you need each month with the break-even calculator.

Questions

How much should I raise prices by?

At least enough to cover the cost rise. To keep the same margin, raise prices by the same percentage as your costs went up.

Can I change the price on a quote I've already given?

Only if your terms allow it. For homeowners, unfair terms rules apply. Our price-change clause generator explains the wording.

Should I include VAT?

No. Work in prices before VAT, then add VAT at the end if you're registered.