Profit Calculator for UK Sole Traders & Small Businesses

Work out your true profit, margin and markup instantly—whether you're VAT registered or not. This calculator is built specifically for UK sole traders, freelancers and small business owners who need to price products properly and understand what they're actually taking home.

What this tool calculates:

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• Net profit per unit and total, after all costs

• Gross margin as a percentage of revenue

• Markup as a percentage of cost

• VAT breakdown including VAT collected, reclaimable input VAT, and what you owe HMRC (if VAT registered)

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Industry benchmarks included:

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Select your sector—handmade, e-commerce, clothing, beauty, food & drink, homeware, digital products, freelance services, print on demand or wholesale—and get tailored margin benchmarks based on 2025 UK industry data. The tool shows you where your margin sits against your sector's typical range and "sweet spot", with specific pricing advice for your market.

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How to use it:

1. Set your VAT status (not registered, or VAT registered at 20%)

2. Choose your industry for tailored benchmarks

3. Enter your cost price, selling price, quantity and any other per-unit costs

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Results update instantly. No signup, no data stored, completely free.

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Also useful for sole traders and landlords:

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If you're calculating your profit, you may also need to check whether Making Tax Digital for Income Tax applies to you. MTD started in April 2026 for anyone earning over £50,000 from self-employment or property. Use our free Making Tax Digital Checker to find your start date and exactly what you need to do.