Free pricing tool
What Should I Charge? — Pricing Calculator for UK Businesses
Most small businesses price by guessing, copying competitors, or picking a round number. None of these guarantee profitability. This calculator works backward from your costs and target margin to show you exactly what you need to charge — whether you sell products, services, or time.
How to use: Enter your direct costs and your desired profit margin. The calculator will show the minimum price you need to charge.
Understanding your results
The calculator shows the minimum selling price needed to achieve your target margin after all direct costs. If the result seems high compared to your market, you have two options: reduce your costs or accept a lower margin. Competing solely on price is rarely sustainable for small businesses — most successful SMEs compete on quality, speed, service or specialisation instead.
Frequently asked questions
Should I include VAT in my pricing?
If you sell to consumers (B2C), your displayed price must include VAT. If you sell to businesses (B2B), it is standard practice to quote prices excluding VAT, since your customers can reclaim it. Either way, your margin calculation should always be based on the VAT-exclusive price — VAT is not your revenue, it belongs to HMRC.
How much should a freelancer charge per hour in the UK?
This depends on your skill, industry and experience. Start by calculating your target annual income, add tax, NIC, pension, overheads and non-billable time, then divide by the number of billable hours you can realistically deliver. Most freelancers can bill 60–70% of their working hours — the rest goes to admin, marketing and business development.
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Need help with your pricing strategy?
Pricing affects everything — cash flow, growth, competitiveness. Book a free call and we will look at your numbers together.
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