Profit Margin + VAT Calculator
Set the right selling price for your products or services. Enter your cost price, desired profit margin, and VAT rate to see the net selling price, VAT amount, gross total, and your profit.
Margin and VAT calculator
Enter the cost price, your target margin, and the VAT rate:
Formulas
Selling Price (net) = Cost × (1 + Margin% ÷ 100)Profit = Selling Price (net) − CostVAT = Selling Price (net) × VAT% ÷ 100Selling Price (gross) = Selling Price (net) + VATMargin vs. markup
Profit margin is calculated as a percentage of the selling price, while markup is calculated as a percentage of the cost. This calculator uses margin: if you enter a cost of 100 and a margin of 30%, the selling price will be 142.86 (not 130).
For markup-based pricing, the formula would be: Selling Price = Cost × (1 + Markup%).
Why this matters for businesses
- Consistent pricing: Ensure every product covers costs and delivers the target profit.
- Competitive offers: Quickly model different margin scenarios to stay competitive.
- Tax compliance: Always show the correct VAT on your invoices.
- Quotation speed: Generate accurate quotes for clients in seconds.
Calculate VAT on any amount
Use our free VAT calculator to add or remove VAT from any price instantly.