Margin and Sales Tax Calculator

Your details

Tax-exclusive: the selling price is shown before tax and tax is added on top at the point of sale. Tax-inclusive: the quoted price already embeds the tax, common in retail and VAT countries.
The total landed cost of the product or service before any markup or tax. Include materials, labour, shipping, and any other direct costs.
USD
Gross margin is profit divided by selling price, expressed as a percentage. A 40% margin means 40 cents of every dollar of revenue is gross profit.
%
The sales tax, GST, or VAT rate that applies to this sale. Set to 0 if your product is tax-exempt or you sell in a jurisdiction with no sales tax.
%
Selling price (pre-tax)Healthy margin
83.33

The price charged before any tax is added

Sales tax amount6.67
Final price (with tax)90
Gross profit33.33
Gross margin0.4%
Markup0.67%
Selling price83.33
Gross profit33.33
Tax6.67
Final price90

Gross margin of 40.0% on a $50.00 cost

  • Your selling price of $83.33 yields $33.33 in gross profit on a $50.00 cost.
  • The customer pays $90.00 in total, of which $6.67 is sales tax that you remit to the government.
  • Markup (66.7%) and margin (40.0%) measure different things: markup is profit over cost, margin is profit over revenue.

Next stepGross margin covers only direct costs. Subtract operating expenses (rent, salaries, marketing) to find your net profit margin.

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