Pricing Calculator
Last updated: April 2026
Pricing Inputs
£
%
How many units to calculate revenue and profit for.
Selling price: £15.00
Primary Result
Cost£10.00
Selling price£15.00
Gross profit£5.00
Gross margin33.3%
Markup50.0%
Quantity
Units100
Revenue£1,500.00
Total profit£500.00
Markup and margin are different
A 50.0% markup = 33.3% margin. Markup is calculated on cost. Margin is calculated on selling price. Confusing them is a common pricing error.
Markup to Margin Conversion
MarkupMargin
10%9.1%
25%20.0%
33%24.8%
50%33.3%
100%50.0%
200%66.7%
What is the difference between markup and margin?
Markup is the percentage added to your cost to determine the selling price. A 50% markup on a £10 product gives a selling price of £15. Margin (gross margin) is the percentage of the selling price that is profit. The same £15 product with a £10 cost has a 33.3% gross margin. Confusing markup with margin leads to systematic underpricing.
How do I set a price to achieve a target margin?
To achieve a target gross margin, divide your cost by (1 minus the target margin). For a 40% margin on a £10 product: £10 / (1 - 0.40) = £16.67. Many businesses make the mistake of adding the target margin percentage to the cost, which consistently undershoots the target.
What is cost plus pricing?
Cost plus pricing is a method where you calculate your total cost and add a percentage on top to determine your selling price. It is simple and ensures profitability on each unit, but ignores market demand and competitor pricing. It works best when costs are predictable and margins are consistent across products.
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