Margin, Markup and VAT Pricing Calculator
Include recoverable or non-recoverable purchase VAT when setting a margin.
Enter a net or VAT-inclusive amount and the rate applicable to your transaction. The tool calculates the price breakdown; it does not choose the legal rate, prepare a VAT return or decide recoverability.
The VAT tool keeps the before-VAT amount, VAT component and inclusive total together. It uses one percentage supplied by you and a cent-balancing method so the displayed net and VAT amounts add back to the gross total.
The calculation establishes the amount in integer cents. This fixes the monetary base before computing the corresponding net or gross figure.
Adding VAT multiplies net by one plus the decimal rate. Removing VAT divides gross by the same factor; it does not subtract that percentage directly from gross.
The remaining difference between rounded gross and net is VAT. This ensures net plus VAT equals the inclusive total after the cent rounding used here.
Sample inputs demonstrate the method. They are not a forecast or product offer.
The first example starts with €100 net and an entered rate of 23%. Multiplication by 1.23 produces €123 gross. The €23 balancing difference is VAT, and the three displayed amounts reconcile exactly.
Sample inputs demonstrate the method. They are not a forecast or product offer.
Read all three figures to check an invoice or compare a net quote with an inclusive budget. A zero VAT amount describes the arithmetic only, not the legal treatment of the supply.
Zero-rated and exempt transactions can have different consequences beyond the price calculation. This page does not determine registration obligations, recoverability, reverse charge or the rate that applies.
Add VAT to a net amount or remove VAT from a VAT-inclusive price using the rate applicable to your transaction.
23% is an editable example rate, not a determination of the rate for your supply. Exempt and zero-rated supplies have different legal treatment even though the arithmetic may be zero. The input and calculated net/tax totals use cents; VAT is the balancing difference so net plus VAT equals gross. Calculate invoice lines separately if your accounting policy rounds per line.
Read our calculation and testing approach.