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Reviewed by Jacob Whitmore, Whito · Fact-checked for accuracy
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Last Updated on November 10, 2026

Most UK business owners can tell you their prices. Far fewer can tell you what they keep.

The usual mistake is mixing up margin and markup. A builder who adds 50% to his costs believes he runs a 50% margin. He does not. He runs a 33% margin, and the missing 17 points is often the difference between a business that works and one that quietly does not.

This calculator works out your gross profit, margin and markup per sale, then shows what that adds up to over 10, 50, 100 and 250 sales. Price one product, one job or one service at a time.

No email address, no sign-up. Everything runs in your browser and nothing you type is sent anywhere.

How the sums work

Three lines of arithmetic, no more.

  • Gross profit per sale = selling price minus all direct costs.
  • Gross margin = gross profit divided by the selling price. This is the share of each pound of revenue you keep.
  • Markup = gross profit divided by the direct costs. This is how much you added on top of cost to reach the price.

Worked example, as an illustration only: Marlow and Finch Candle Co. is an invented business that sells a gift set at £120. The set costs £72 to make and £8 to box and post. Direct costs are £80, so gross profit is £40 per sale. Margin is 40 divided by 120, which is 33.3%. Markup is 40 divided by 80, which is 50%.

Same numbers, two different percentages. That is the whole margin and markup confusion in one example. Markup is always the bigger number, which is why quoting your markup as your margin flatters the business.

What this does not tell you

  • This is gross profit. Overheads such as rent, insurance, software, marketing and your own wage still have to come out of it. A healthy gross margin with heavy overheads is still a loss.
  • Prices here are ex VAT. If you are VAT registered, the VAT you charge is not revenue. Work margins on net figures, and use our VAT calculator to strip VAT out of a gross price first.
  • It prices one sale. Whether enough of those sales exist each month is the break-even question, and there is a calculator for that.

Who this is for

Any UK business that sells something: trades pricing jobs, makers pricing products, freelancers pricing fixed-fee work, shops checking lines. If you have never separated margin from markup, start with your best-selling item and be ready for a surprise.

Questions people ask

What is the difference between margin and markup?

Margin measures profit against the selling price. Markup measures profit against the cost. A 50% markup is a 33.3% margin. A 100% markup is a 50% margin. Markup is always the bigger number for the same sale.

What is a good gross margin for a UK small business?

It varies too much by sector for one honest number. Materials-heavy trades often run gross margins of 30 to 50% on jobs, while service businesses with little direct cost can run far higher. The useful comparison is your own margin over time and against your overheads, not a universal target.

Should I include my own time as a direct cost?

If someone else would have to be paid to do the work, yes, cost your time at what that labour is worth. Pricing your own hours at zero is the most common way small businesses understate their costs and overstate their margin.

Is my data stored?

No. The calculation runs in your browser. Nothing you type is sent to us or anyone else.

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Whito
Whito is an independent UK research publisher. We publish research on how UK businesses are found, trusted and priced: what they cost to market, how their sectors work, and who actually gets recommended. Studies are free to read, every figure carries the date it was checked, and nobody pays to appear.