VAT/GST + Profit

Work out VAT and profit clearly so you can see what is tax, what is revenue and what is actually left.

Inputs

Currency

VAT/GST rate (%)

Selling price entered as

Unit cost (ex VAT)

Selling price

Assumes unit cost is VAT-exclusive. Margin = profit / net sale. Markup = profit / cost.

Results

Net sale (ex VAT)

—

VAT amount

—

Gross sale (inc VAT)

—

Profit (ex VAT)

—

Margin

—

Markup

—

Breakeven (ex VAT)

—

Breakeven (inc VAT)

—

How this calculation works

This calculator splits the selling price into net sale value and VAT using the rate you enter, then compares the net sale with your VAT-exclusive cost to estimate profit, margin, markup, and breakeven price.

It is most useful for quick pricing checks when you want to know whether a planned selling price leaves enough room after VAT has been stripped out.

Assumptions

The unit cost entered is treated as VAT-exclusive.
The VAT or GST rate is assumed to stay constant across the transaction.
The tool is focused on one item or one pricing unit rather than full business overhead allocation.

Worked example

If your unit cost is £10 ex VAT and you want to sell at £19.99 including 20% VAT, the calculator first removes VAT to find the net sale value. It then compares that net value with your £10 cost to show the actual ex-VAT profit and margin.

That makes it easier to avoid confusing gross selling price with the amount that really contributes to profit.

Limitations

It does not determine whether you must register for VAT or whether reduced, zero, or exempt rates apply to your product or service.
It is a unit-level planning aid rather than an accounting or filing tool.