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, 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 realistic South Africa planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Revenue (R) | 50000 |
| Total Costs (R) | R500 |
After entering these figures, review profit, margin and markup together rather than in isolation. Then rerun the tool with one input adjusted.
How to read your results
Profit
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Margin
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Markup
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Method & assumptionsAuthoritative sources
This calculator works on the standard gross profit margin formula: (Revenue − Cost of Goods Sold) ÷ Revenue × 100. Enter your sales revenue and the direct costs associated with producing or delivering your product or service. Direct costs typically include raw materials, stock purchased for resale, and any labour directly tied to production. The calculator does not factor in overheads such as rent, insurance, or administrative salaries — those belong in a net profit calculation.
UK businesses should enter VAT-exclusive figures if VAT-registered. Sole traders and limited companies may have different allowable cost definitions under tax authority rules, so consult your accountant when classifying costs for tax purposes. Use this tool for quick decision-making and pricing reviews rather than as a substitute for formal management accounts.
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.
Frequently asked
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