Pricing and Commercial Maths
A practical guide to markup, margin, discounting, ROI, and break-even thinking that keeps the definitions separate so pricing decisions are not distorted by similar-looking percentages that mean very different things.
Use this calculator for a quick ROI check when you want to compare net gain against the original cost.
Inputs
This topic also has a deeper guide and a printable reference pack, so you can move from the live answer into the method, assumptions, and worked examples without leaving the topic cluster.
These are the main values the calculator uses. Keep the units consistent and, where relevant, match the assumptions explained in the related guide.
Unit: GBP
Use the ending value or proceeds after the investment or spend has run its course.
Unit: GBP
Enter the original amount committed so the return can be measured against it.
Use this page when the main question is how large the gain is relative to the original outlay.
The main result is ROI as a percentage. The supporting value shows the net gain in currency terms so the percentage stays connected to the actual amount earned.
If an outlay of 10,000 ends at 14,000, the net gain is 4,000 and the ROI is 40%.
ROI is a simple return ratio. It does not account for the time taken to earn that return, which is why CAGR or time-value tools are often the better comparison for multi-year outcomes.
Use CAGR when the time period matters and you want an annualised growth rate. ROI is a scale-of-return measure, but it says nothing about speed on its own.
Use the CAGR Calculator to work out cagr from values you control yourself, without baked-in policy assumptions.
Work out gross profit, profit margin, and markup from the selling price and cost you enter.
Calculate what a present amount grows to after the annual rate and time period you enter are applied.
Calculate a fixed-payment loan from the amount borrowed, rate, and term, using only the values you enter.