Example result based on the prefilled values.
Result
65.00
Continue your plan
Useful next calculations
When to use this calculator
- Before pricing a job, setting margin targets, or reviewing hiring costs.
- When you want to test sensitivity around volume, VAT, markup, or overhead changes.
- When you need a practical estimate before committing to a budget or proposal.
- When you are modelling break-even volume and want to see how it shifts as overheads or prices change.
- When you are preparing a quote and need to verify that the margin holds after materials, labour, and VAT are accounted for.
A realistic Australia planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Cost Price (£)
A$0.30
Markup (%)
30
After entering these figures, focus on result first and then rerun the tool with a more cautious assumption to understand the realistic range of outcomes rather than relying on a single estimate.
How to read your results
Result
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
Markup is calculated as: (Selling Price − Cost) ÷ Cost × 100. To find a selling price from a desired markup, multiply the cost by (1 + markup rate). This is distinct from margin, which divides profit by selling price. The calculator lets you work in either direction: enter a cost and desired markup to find your selling price, or enter cost and selling price to find the implied markup.
UK businesses should work on VAT-exclusive figures wherever possible, as VAT collected is not part of your trading profit. The calculator does not include overheads in the cost figure — if you want to price for full-cost recovery, you will need to allocate a share of fixed costs to each unit before entering the cost. For businesses subject to Making Tax Digital, your accounting software should track margins at line-item level to support accurate reporting.
Common mistakes
- !Using an assumption that is not supported by a current local quote, bill, statement or official source.
- !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- !Mixing monthly and annual inputs without converting them consistently.
- !Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
- !Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
- Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.
Frequently asked
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