Pricing & Margin Calculator
Price from a target margin or markup, compare margin tiers, and see gross, contribution and net margin in one place.
Margin = profit ÷ selling price.
Fees or fulfilment that change with each sale.
Overheads allocated to each unit.
Comma-separated, for example 30, 40, 50.
Selling price (ex tax)
£80.00
Exact £80.00 · £96.00 including 20% tax
Price inc. 20% tax
£96.00
Tax per unit
£16.00
Gross profit
£40.00
Net profit
£25.00
Gross margin
50.0%
Contribution margin
43.8%
Net margin
31.3%
Markup
100.0%
Cost
£40.00
If unit cost rises 10%
Net profit becomes £21.00 and net margin becomes 26.3%.
Profit, margin and markup are worked out on the tax-exclusive price, because sales tax is collected for the tax authority rather than kept as revenue.
A 100% markup is only a 50% gross margin - always confirm which one a supplier or spreadsheet means.
Pricing tiers
How it works
Enter your unit cost and choose how to set the price: target margin, target markup or a fixed price. The calculator shows profit, markup and three flavours of margin - gross, contribution and net - so you can see exactly what you keep after each layer of cost.
Basic guide
Choose whether you want to calculate from a target margin, target markup or an existing fixed price.
Enter unit cost and any other variable or allocated costs. You can then compare different margin tiers and account for VAT or price rounding.
Example
If unit cost is £40 and you want a 50% gross margin, the required selling price before tax is:
£80
The calculator can then show the resulting gross, contribution and net margins and compare other target margins.