Free pricing tool
Markup and margin calculator.
Enter the direct cost of delivering the work, any job-specific overhead and your target gross margin. The calculator shows the selling price before VAT, gross profit per job and equivalent markup. Your figures stay in this browser and are not submitted.
Calculated result
- Total delivery cost
- £100.00
- Selling price before VAT
- £166.67
- Gross profit per job
- £66.67
- Gross margin
- 40.0%
- Equivalent markup
- 66.7%
This is a planning calculation, not accounting or tax advice. It does not decide whether your cost inputs are complete, allocate all fixed overhead or add VAT. Confirm the tax treatment and commercial assumptions for your business.
How the calculation works
Selling price equals total delivery cost divided by one minus the target margin as a decimal. Gross profit is selling price minus delivery cost. Markup compares that profit with cost; margin compares it with selling price.
A price is only as reliable as its inputs. Before using the result in a quote, check the scope, non-billable time, likely rework, payment fees and the contribution needed for the business's fixed overhead. Read the pricing and profitability hub for the wider decision.
What happens next
Turn the number into a pricing system.
Business Fix 007 adds the cost builder, discount impact, scope controls and review rhythm needed to use the calculation consistently.
