Compute margin on a VAT-inclusive price.
Please do not make financial decisions based on these results.
What is the Margin and VAT Calculator?
Compute margin on a VAT-inclusive price. To use the Margin and VAT Calculator, enter price including vat, vat rate, cost; it returns margin, net price, vat amount, and shows them instantly as you type.
Where the Margin and VAT Calculator fits
Compute margin on a VAT-inclusive price. The main figure it returns is the Margin, worked out from the values you enter.
It belongs with the other sales, discounts & pricing tools. If you are comparing options or checking a result from another angle, try the Margin and Markup Calculator, Margin and Sales Tax Calculator or the Margin With Discount Calculator.
How to use the Margin and VAT Calculator
- Enter your numbers. The inputs are Price including VAT ($), VAT rate (%), Cost ($). Use real figures from your own records where you can. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Margin, and the cards below show Net price, VAT amount. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Margin and VAT Calculator using the default values shown in the calculator above:
Inputs
| Price including VAT ($) | 120 |
|---|---|
| VAT rate (%) | 20 |
| Cost ($) | 55 |
Results
| Margin | 45% |
|---|---|
| Net price | $100.00 |
| VAT amount | $20.00 |
With these inputs the calculator returns Margin: 45%. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Price including VAT ($) from 120 to 144 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Margin | 45% | 54.17% | +20.4% |
| Net price | $100.00 | $120.00 | +20% |
| VAT amount | $20.00 | $24.00 | +20% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Margin and VAT Calculator reports Margin, net price and vat amount. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
Why exclude VAT?
VAT is passed on to the tax authority, so profit is measured on the net price.
How do I convert markup to margin?
Margin equals markup divided by one plus markup. A 60% markup is a 37.5% margin.
Is sales tax included?
Only where a tool has a tax field. Enter your own local rate because it varies by location.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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