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Nanokit

Nanokit

Core Costs
£
%
Pricing Mode
%
Recommended Selling Price

£171.43

Gross (Inclusive of 20% VAT)

Net Price (Ex. Tax)£142.86
Tax Amount+£28.57
Margin Amount

£42.86

Profit Margin

30.00%

Markup

42.86%

Margin vs Markup Cheat Sheet

10% Margin

Requires 11.1% Markup

20% Margin

Requires 25% Markup

30% Margin

Requires 42.9% Markup

50% Margin

Requires 100% Markup

Professional Pricing: Why Margin Matters

Profit margin is the single most important metric for any product-based business. Understanding the distinction between Margin and Markup is critical for long-term sustainability.

Margin vs. Markup

Markup is the percentage added to the cost price to get the selling price. Margin is the percentage of the selling price that is profit. For example, if you buy something for £50 and sell it for £100, your markup is 100% (on cost), but your margin is only 50% (on revenue). Never confuse the two, or you will consistently under-price your work.

The VAT Trap

Business owners often calculate their profit including the tax they've collected. VAT is not your money; it belongs to the government. This calculator automatically splits the tax from your net revenue, ensuring you only view the profit that your business actually keeps.

Gross vs Net

Net price is the amount before tax. Gross price is what the customer actually pays. Professional services usually quote net prices (B2B), while retail businesses must focus on gross prices (B2C). Use this tool to work backward from a target retail 'sweet spot' (like £9.99) to see if the resulting margin is viable.