Business Calculator UK
Free Business UK | Markup, Margin & Profit calculator for the UK. Get instant, accurate results with our easy-to-use online tool. Updated for 2025/26 with...
Last updated: February 2026
UK Business Calculator
Essential business calculations including markup, margin, profit, pricing, and break-even analysis for UK businesses.
Markup Calculator
Calculate selling price from cost and markup percentage.
Profit Margin Calculator
Calculate profit margin from cost and selling price.
Pricing Calculator
Calculate the maximum cost price to achieve your desired margin.
Break-Even Calculator
Calculate how many units you need to sell to cover your costs.
Profit Analysis
Comprehensive profit analysis for your business or product.
Markup vs Margin: What's the Difference?
These terms are often confused, but understanding the difference is crucial for pricing:
Markup
Percentage added to cost price
Example: Buy for £50, sell for £75
Markup = (£25 ÷ £50) × 100 = 50%
Margin
Profit as percentage of selling price
Example: Buy for £50, sell for £75
Margin = (£25 ÷ £75) × 100 = 33.3%
Quick Conversion Table
| Markup % | Margin % | Multiplier |
|---|---|---|
| 15% | 13.0% | ×1.15 |
| 20% | 16.7% | ×1.20 |
| 25% | 20.0% | ×1.25 |
| 33.3% | 25.0% | ×1.33 |
| 50% | 33.3% | ×1.50 |
| 100% | 50.0% | ×2.00 |
| 150% | 60.0% | ×2.50 |
| 200% | 66.7% | ×3.00 |
Pro Tip
Use margin when analyzing financial reports and comparing businesses. Use markup when setting prices from your cost. Many retail businesses use standard markups (e.g., 100% for gifts, 50% for groceries).
UK Industry Profit Margin Benchmarks
Compare your margins to typical UK industry averages:
| Industry | Gross Margin | Net Margin | Typical Markup |
|---|---|---|---|
| Retail (general) | 25-50% | 2-5% | 50-100% |
| Grocery/Supermarket | 20-25% | 1-3% | 25-35% |
| Restaurant/Cafe | 60-70% | 3-9% | 200-300% |
| Clothing/Fashion | 40-60% | 4-13% | 100-150% |
| Professional Services | 50-75% | 15-25% | 100-300% |
| Construction | 15-25% | 2-10% | 15-30% |
| Manufacturing | 25-35% | 5-10% | 30-50% |
| Software/Tech | 70-90% | 15-30% | 200-900% |
Remember
Gross margin is profit before operating expenses. Net margin is profit after all expenses including tax. A high gross margin doesn't guarantee profitability if operating costs are high.
Understanding Break-Even Analysis
Break-Even Formula
The difference (Selling Price - Variable Cost) is called the contribution margin.
Example Break-Even Calculation
Inputs
- Fixed Costs: £10,000/month
- Variable Cost per Unit: £30
- Selling Price: £50
Results
- Contribution Margin: £20
- Break-Even Units: 500
- Break-Even Revenue: £25,000
Why Break-Even Matters
- Helps set realistic sales targets
- Informs pricing decisions
- Essential for business plans and investor pitches
- Helps evaluate new product viability
- Guides decisions on fixed cost investments
Pricing Strategies for UK Businesses
Cost-Plus Pricing
Add fixed markup to costs. Simple but may ignore market conditions.
Value-Based Pricing
Price based on perceived value to customer. Higher margins possible.
Competitive Pricing
Match or undercut competitors. Works in commodity markets.
Dynamic Pricing
Adjust prices based on demand. Common in travel, hospitality.
VAT Consideration
Remember to factor in VAT (20% standard rate) when setting prices. If you're VAT registered, your selling price to consumers includes VAT, but you'll keep less than the sticker price. Use our VAT Calculator to work out net and gross prices.
UK Tax Considerations for Business Profits
| Tax Type | Rate (2025/26) | Applies To |
|---|---|---|
| Corporation Tax (small profits) | 19% | Profits under £50,000 |
| Corporation Tax (marginal) | 19-25% | Profits £50,001-£250,000 |
| Corporation Tax (main rate) | 25% | Profits over £250,000 |
| Income Tax (sole traders) | 20-45% | Profits taxed as income |
| National Insurance Class 4 | 6% | Self-employed profits £12,570+ |
| VAT | 20% | Turnover over £90,000 |
Professional Advice
Tax rules are complex and change regularly. Always consult a qualified accountant for advice specific to your business situation. The calculations on this page are for illustrative purposes only.
Frequently Asked Questions
Expert Reviewed — This calculator is reviewed by our team of financial experts and updated regularly with the latest UK tax rates and regulations. Last verified: February 2026.
Last updated: February 2026 | Verified with latest UK rates
Pro Tips for Accurate Results
- Double-check your input values before calculating
- Use the correct unit format (metric or imperial)
- For complex calculations, break them into smaller steps
- Bookmark this page for quick future access
Understanding Your Results
Our Business Calculator provides:
- Instant calculations - Results appear immediately
- Accurate formulas - Based on official UK standards
- Clear explanations - Understand how results are derived
- 2025/26 updated - Using current rates and regulations
Common Questions
Is this calculator free?
Yes, all our calculators are 100% free to use with no registration required.
Are the results accurate?
Our calculators use verified formulas and are regularly updated for accuracy.
Can I use this on mobile?
Yes, all calculators are fully responsive and work on any device.
People Also Ask
Quick Tip: Key Financial Ratios Every UK Business Should Track
Beyond basic profit and loss, monitoring a handful of financial ratios can provide early warning signs of business health issues. The current ratio, calculated by dividing current assets by current liabilities, should ideally be between 1.5 and 3.0 for UK small businesses; anything below 1.0 suggests potential cash flow problems. Gross profit margin, expressed as a percentage of revenue after deducting cost of goods sold, varies by industry but should be tracked monthly for trends. The debtor days ratio, which measures how quickly customers pay invoices, is particularly important for UK businesses where late payment remains a widespread challenge, with the average small business waiting 23 days beyond agreed terms. HMRC also looks at these ratios during compliance checks, so maintaining accurate records and understanding your numbers is both good practice and a legal necessity for VAT-registered businesses.
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