Unit cost
Known value
Result
Selling price, incl. VAT
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Markup and margin use different bases, and that is the source of almost every pricing mistake. Markup = profit ÷ cost × 100%, margin = profit ÷ price × 100%. A 100% markup is a 50% margin, and a 100% margin does not exist.
Unit cost = purchase price + extra costs. Profit = price excl. VAT − unit cost. VAT is added on top of the net price: VAT = net price × rate ÷ 100, and the gross price is their sum.
Reverse formulas for the other two modes: price from markup = cost × (1 + markup ÷ 100); price from margin = cost ÷ (1 − margin ÷ 100). The second one explains why margin can never reach 100%: the denominator goes to zero.