PB Digital Tools

Profit Margin / Markup / VAT Calculator

Results
Net price
16.67
Total price
16.67
Profit
6.67
Margin / Markup
40% / 66.67%

Price from margin: (cost+fees)/(1−m). Price from markup: (cost+fees)×(1+k).

Visual

Price compositionStacked bar showing cost, fees, profit and VATCostProfitNet 16.67Total 16.67CostFeesProfit
Visual breakdown of price components.

How this is calculated

Purpose — Convert between margin and markup correctly, and price a product when you have fees and VAT to consider.

Margin vs. Markup

  • Margin % = Profit ÷ Net Price
  • Markup % = Profit ÷ Cost
  • They’re not interchangeable: 40% margin ≈ 66.67% markup.

Formulas

  • Price from margin m: price = (cost + fees) / (1 − m)
  • Price from markup k: price = (cost + fees) × (1 + k)
  • VAT exclusive: total = net × (1 + VAT)
  • VAT inclusive: net = total / (1 + VAT)

FAQ

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Last updated: 2025-08-09