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Markup and Margin Calculator (United Kingdom)

Price a job from your cost, see the markup and the margin side by side, and get the VAT figure that goes on the invoice. Everything runs on your device.

  • £ GBP
  • VAT 20%
  • VAT number
  • A4
  • English
Work from

Charge

£1,400.00

excluding VAT

Cost
£1,000.00
Profit
£400.00
VAT at 20%
£280.00
Total on the invoice
£1,680.00

That is a 40% markup and a 28.57% margin.

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Price rules that affect your markup

The UK has no general price controls on ordinary goods and services. What applies is price display. Under the Price Marking Order 2004, a trader offering a product to consumers must show the selling price, which means the final price including VAT and all other taxes (articles 2 and 4). The price must be unambiguous, easily identifiable and clearly legible, placed close to the product, and available without the customer needing to ask staff (article 7).

A unit price per kilogram, litre, metre, square metre or cubic metre is also required for goods sold from bulk or in prescribed quantities, except where the unit price equals the selling price, and in some small-shop cases for bread and constant-quantity pre-packs (article 5). An advertisement needs a unit price only if it shows a selling price. The Order does not apply to products supplied as part of a service, or to auctions, art and antiques (article 3).

Prices must be in sterling. A shop that also accepts foreign currency must show the price in that currency with any commission, or state the conversion rate and commission (article 6). After a VAT rate change, a shop may use a general notice for 14 days that prices are adjusting (article 11). A sale reduction may be shown by a prominent general notice (article 9).

Since 6 April 2025, section 230 of the Digital Markets, Competition and Consumers Act 2024 treats leaving out material information from an invitation to purchase as an unfair commercial practice. The total price must include all fees, taxes, charges and other payments the customer will necessarily incur. Optional delivery or postal charges must be shown, or flagged as payable if they cannot be calculated in advance. Where the total cannot be worked out beforehand, the method of calculation must be shown with the same prominence as the price. Advertising a price at which goods cannot be supplied in reasonable quantities for a reasonable period, and then switching customers to another product, is banned under Schedule 20, paragraphs 5 and 6.