Markup, Margin & VAT Calculator
Free markup, margin and reverse-VAT calculator: turn cost into selling price, convert markup to margin, and add or remove VAT — instantly, in your browser.
- ✓ Runs in your browser — nothing uploaded
- ✓ No sign-up
- ✓ Free, no limits
Markup vs margin — what's the difference?
Both measure the same profit ($50.00 on a $100.00 cost), but against different bases. Markup is profit as a percent of cost (50%); margin is profit as a percent of the selling price (33.33%). Margin is always the smaller number, which is why quoting a “50% markup” is not a “50% margin”.
Runs entirely in your browser — nothing you type is uploaded. Figures are estimates for pricing; confirm the VAT/tax rules that apply to your country and product.
This combined calculator handles the three pricing questions small businesses and freelancers ask most: how to mark up a cost into a selling price, the difference between markup and margin, and how to add or reverse-calculate VAT. Switch between the three modes, type your numbers, and the results update instantly in your chosen currency.
Markup and margin sound interchangeable but aren't, and confusing them quietly erodes profit. Markup is your profit as a percent of what the item cost you; margin is the same profit as a percent of the price you sell it for. Worked example: buy for $100, add a 50% markup, and you sell at $150 for $50 profit — but that's a 33.3% margin, not 50%. This tool always shows both numbers together, so you can price to a target margin without doing the algebra.
The VAT mode adds tax to a net price or removes it from a gross one. Reversing VAT trips people up because you divide by (1 + rate), not subtract the rate: a $120 gross price at 20% VAT contains $20 of VAT and a $100 net figure, because $120 ÷ 1.20 = $100. Use it to back out the pre-tax cost of a receipt, quote a client the right gross total, or check a supplier's invoice. Everything runs in your browser — nothing is uploaded — and the figures are estimates, so confirm the VAT rules and rates that apply where you trade.
Frequently asked questions
What's the difference between markup and margin?
Markup is profit as a percent of your cost; margin is the same profit as a percent of the selling price. Because price is bigger than cost, margin is always the smaller number — a 50% markup is only a 33.3% margin.
How do I get the selling price from a cost and a target margin?
Divide the cost by (1 − margin). For a 40% margin on a $60 cost, that's 60 ÷ 0.60 = $100. The Margin mode does this and also shows the equivalent markup.
How do I remove VAT from a price (reverse VAT)?
Divide the gross (VAT-inclusive) amount by (1 + the VAT rate) — do not subtract the rate. A £120 price at 20% VAT is £120 ÷ 1.20 = £100 net, so the VAT is £20. Reverse VAT mode does this for any rate.
Is a 50% markup the same as a 50% margin?
No — this is the most common pricing mistake. A 50% markup on a $100 cost gives a $150 price, which is a 33.3% margin. To actually earn a 50% margin you'd need to sell at $200 (a 100% markup).
Does it work for any currency and VAT rate?
Yes. Pick your currency and type any VAT/sales-tax rate. All the maths runs locally in your browser, so nothing you enter is sent anywhere.