Pricing & Margin Calculator

Price from a target margin or markup, compare margin tiers, and see gross, contribution and net margin in one place.

Currency:
Calculate from
£
%

Margin = profit ÷ selling price.

£

Fees or fulfilment that change with each sale.

£

Overheads allocated to each unit.

%
%
Price rounding

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

30% target£57.14£68.57 inc.30.0%
40% target£66.67£80.00 inc.40.0%
50% target£80.00£96.00 inc.50.0%

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.

Related tools