Margin and VAT Calculator

Your details

Choose which value you want the calculator to find. The remaining two fields become your inputs.
The cost of goods or production, before any margin or VAT. This is what you pay.
Gross profit margin as a percentage of the net selling price. A 25% margin means profit is 25% of the net price.
%
The value-added tax (VAT) rate applied to your net selling price. Common rates: UK 20%, EU standard 20-27%, zero-rated 0%.
%
Currency
Gross price (inc. VAT)Healthy margin
128

The final price your customer pays, including VAT

Net selling price106.67
VAT amount21.33
Profit26.67
Net cost80
Profit margin0.25%
Markup0.33%
Cost80
Profit26.67
Net price106.67
VAT21.33
Gross price128

Gross price $128.00 with a 25.0% margin.

  • For every $106.67 you sell, $26.67 is profit and $80.00 covers your cost.
  • VAT adds $21.33 (20%) on top, so your customer pays $128.00 in total.
  • Your markup is 33.3%. Note: margin is measured against selling price, markup against cost, so markup is always higher than margin for the same transaction.

Next stepConsider running a sensitivity check: see how a 5% rise or fall in cost affects your gross price.

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