Pricing & cashflow
Pricing Calculator — desired margin → sell price
Cost in, target margin in, sell price out — with optional UK VAT on top. Built for shopkeepers, ecommerce sellers, and anyone tired of doing this on the back of a receipt.
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Common questions
- What's the difference between margin and markup?
- Markup is profit ÷ cost. Margin is profit ÷ sell price. Selling at £100 with a £40 cost is a 60% margin but a 150% markup — same money, two different denominators. This calc lets you target margin (the more honest yardstick).
- Should I include VAT in the sell price?
- Depends on your customers. B2C retail prices are quoted including VAT (because shoppers think in gross). B2B usually quotes net + VAT separately (because the buyer reclaims it). Toggle the VAT rate and we'll show you both.
- What margin should I target?
- Hospitality 60-70% gross margin, retail 40-60%, ecommerce often 30-50%, services 50%+. Below 30% gross margin and small unexpected costs (chargebacks, returns, marketing) wipe out the profit fast.
- Does this account for fixed overheads?
- No — this is unit pricing. To work out break-even (covering rent, salary, software etc.), use the Break-even calculator. Pair the two: this calc sets the right unit price; break-even tells you how many units you need to sell.
- What about discounts?
- Always price from the un-discounted figure first, then apply discount % off. Otherwise you'll undermine your real margin. A 20% discount off a 50%-margin product cuts the margin to ~37% — still healthy, but watch the slide.