Plus

Business Markup Calculator

Work out the average mark-up you need to charge to hit your yearly profit goal, based on your real operating costs, cost of goods and VAT.

How It Works

Enter your costs, set a profit goal, get the mark-up to aim for

1

Step 1

Enter Your Costs

Add annual operating costs (rent, wages, utilities) and your annual cost of goods. Enter costs after any VAT you reclaim.

  • Works with VAT or without
  • Uses your real costs
  • Use the Operating Cost tool, then enter its total

Illustrative example: VAT registered, using a 20% VAT rate.

Operating costs (annual)
£95,000
Cost of goods (annual)
£60,000
Tip: not sure on operating costs? Work it out here.
2

Step 2

Set Your Profit Goal

Pick a fixed yearly profit or a percentage of total costs. You get back the average mark-up you need to charge.

  • A clear number to aim for
  • VAT-aware maths
  • Warnings for very high goals
Required average markup before VAT
3.0×
£25,000 annual profit goal: (£95,000 + £60,000 + £25,000) ÷ £60,000. Revenue target: £180,000 before VAT, £216,000 including VAT.
3

Step 3

Check Your Sales Target

Add your average customer order price, including VAT if charged, to see how many sales you need to hit that profit goal.

  • Weekly and monthly targets
  • Warning above 200 sales per week
  • Helps you size a campaign

Sales targets at £60 per order, including VAT

70
per week
300
per month
3,600
per year
£216,000 ÷ £60 = 3,600 sales per year. Monthly and weekly targets round up to whole sales. Check individual product prices with the Arrangement Calculator.

What's Inside This Calculator

Everything you need to pick a mark-up you can hit

Target markup

Takes your operating costs, cost of goods and profit goal, then gives you the average mark-up to aim for.

Reverse calculation

Enter a mark-up to see the profit and revenue it leaves you. Flags anything that runs at a loss.

Sales targets and VAT-aware

Weekly and monthly sales targets use your average customer order price. VAT settings start from your business defaults; check the rate before calculating.

Frequently Asked Questions

Markup is the percentage added to cost. Margin is the percentage of the selling price that is profit. The calculator shows both.
One average markup for the whole shop. The Markup Impact Analysis then shows a conservative, target and premium multiplier, so you can vary prices by product and still average out on target.
Yes. Choose Reverse Calculate from Markup, enter the multiplier you use now, and it shows the profit that leaves once your overheads are paid.
Yes. Apply the result to your flower and sundry defaults, and new price-list items and new arrangement calculations start from that multiplier.
You can toggle VAT on or off. When enabled, the calculator separates net and gross figures clearly.

Stop Guessing Your Markup

Work out the markup that hits your profit goal, then price every job from the same number. On Plus, and included with BFA, IoF and GFG membership.

We use cookies to run the site and for referral tracking. Cookie policy

Ready to start?
Free tools waiting
Get Started