Financial percentage calculators
These calculators are used by business owners, employees, shoppers and anyone dealing with money and finance in the UK. Whether you need to add VAT to an invoice, check whether a sale price is genuinely good value, work out your take-home pay after a rise or set the right selling price for a product, all eight calculators are built around UK rates and contexts, including the 20% standard VAT rate.
VAT Calculator
Add or remove UK VAT from any amount. Works with the 20% standard rate, 5% reduced rate and 0% zero-rated goods.
Discount Calculator
Calculate the sale price and total saving from any discount percentage.
Percentage Off Calculator
Find the final price and saving for any percentage off offer.
Tip Calculator
Calculate a tip and split a restaurant bill between any number of people.
Markup Calculator
Set a selling price from a cost price and target markup percentage.
Profit Margin Calculator
Find gross profit margin and profit amount from any revenue and cost figures.
Pay Rise Calculator
Calculate your new annual salary after a percentage pay rise.
Commission Calculator
Work out commission earned from any sale value and commission rate.
Financial percentages in everyday UK life
Reading your payslip
A payslip showing a gross salary of £32,500 with National Insurance deductions of £2,436 means NI is taking 7.5% of your gross pay. If you then receive a 4.5% pay rise, your new annual salary becomes £33,962 and your monthly gross rises from £2,708 to £2,830. Understanding these figures helps you check your payslip is correct and plan your finances accurately.
Checking whether a Black Friday deal is genuine
A television "reduced from £799 to £599" sounds like a strong deal, but the saving is just under 25%. Use the percentage change calculator to compare deals across retailers and confirm the discount is based on a real previous price. Some retailers inflate the listed "was" price to make a saving appear larger than it is.
Calculating VAT on a business invoice
If you supply a service for £1,200 net and need to charge 20% VAT, the total invoice value is £1,440. If a supplier sends you a VAT-inclusive invoice for £960 and you need to identify the VAT element to reclaim, the net amount is £800 and the VAT is £160. Both directions are one step with the VAT calculator.
Negotiating a pay rise
If you currently earn £28,000 and want to ask for a 7% rise, your new salary would be £29,960, an increase of £1,960 per year or £163 per month before tax. Over three years with consistent 5% annual increases from that same starting salary, your earnings would reach £32,409. Knowing these figures before a salary review meeting puts you in a stronger position.
Setting product prices with the right margin
A product costing £45 to make and selling for £75 gives a gross profit margin of 40% and a markup of 66.7%. These are different figures calculated differently, and confusing them leads to underpricing. If your target is a 50% profit margin on a product costing £45, the correct selling price is £90, not £67.50. Getting this wrong erodes profit on every unit sold.
Understanding financial percentages
The difference between markup and margin
Markup and margin are calculated from the same cost and revenue figures but they measure different things. Markup is the profit expressed as a percentage of cost. Margin is the profit expressed as a percentage of revenue. A product costing £60 and selling for £100 has a markup of 66.7% and a margin of 40%. Most retailers report margin; many manufacturers work in markup. Knowing which metric is being used matters when setting prices, comparing suppliers or reviewing profit targets. Both calculations are available using the markup calculator and profit margin calculator.
How VAT works in the UK
Value Added Tax (VAT) is a consumption tax applied to most goods and services sold in the UK. The standard rate is 20%, which applies to the majority of products and services. A reduced rate of 5% applies to domestic fuel, children's car seats and certain other goods. Zero-rated goods (0%) include most food, children's clothing and books, meaning VAT is technically charged but at a nil rate. VAT-registered businesses charge VAT on their sales and reclaim it on qualifying purchases. For businesses below the VAT registration threshold, VAT paid on purchases is a final cost. For the full list of which goods fall into which band, see HMRC VAT rates.
How pay rise percentages compound over time
Each pay rise is applied to the current salary, not the original. Starting at £25,000 with 3% annual increases: after year 1 the salary is £25,750, after year 2 it is £26,523, after year 3 it is £27,318 and after five years it reaches £28,981. Over 10 years the same salary reaches £33,598, an increase of 34.4% from the starting figure. This is why a small but consistent annual percentage makes a meaningful long-term difference even when it feels modest in any single year.
For a deeper look at percentage calculations in business contexts, visit the percentages for business guide. For how percentages are used in investment, loans and financial analysis, see percentages in finance.
Related resources
VAT Calculator
Add or remove UK VAT from any amount using the 20% standard rate.
Business Percentage Worksheet
Printable worksheet covering percentage calculations in business contexts.
VAT Worksheet
Practice worksheet for calculating VAT additions and removals.
Percentages for Business
How percentages are used in pricing, profit, tax and business finance.