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, tax, markup or overheads.
- When you need a practical estimate before committing to a budget or proposal.
- When you are modelling break-even volume as costs or prices change.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Cost Price (R) | R50 |
| Markup (%) | 30% |
For those figures the calculator returns:
- Selling price: R65.00
- Cost price: R50.00
- Markup amount: R15.00
- Gross margin: 23.08%
Method & assumptions
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.
- 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.