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Your pricing inputs

Labour, materials and subcontractors used to deliver this job.

Travel, software, fees or other cost created by this piece of work.

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.