Free tool
Margin calculator
Work out a price from your cost and the margin or markup you want, or check the margin on a price you already charge. Irish VAT is added at the end.
- Price excluding VAT
- €1,000.00
- Profit
- €200.00
- Margin
- 20%
- Markup
- 25%
- VAT at 23%
- €230.00
- Your customer pays
- €1,230.00
Margin or markup?
Both describe the same profit. Markup compares it with your cost, margin with your price. Mixing them up is the usual way a job ends up priced lower than planned.
A job costs you €800.00. A 25% markup prices it at €1,000.00: a profit of €200.00, which is only a 20% margin.
For a 25% margin you need €1,066.67: a profit of €266.67, which is a 33.3% markup.
| Markup on cost | Margin of price |
|---|---|
| 10% | 9.1% |
| 20% | 16.7% |
| 25% | 20% |
| 30% | 23.1% |
| 50% | 33.3% |
| 100% | 50% |
Where VAT fits
Work out your margin on the price excluding VAT. The VAT you add is collected for Revenue, so it is not profit. If you are not registered for VAT, charge no VAT and count the VAT you pay on materials as part of your cost. See the Irish VAT rates guide for which rate applies, and the VAT registration threshold for when you have to register.
Questions about margin
What is the difference between margin and markup?
Markup is profit as a share of your cost. Margin is profit as a share of your price. The same profit is a bigger markup than margin: a job that costs €800.00 and is priced at €1,000.00 has a 25% markup and a 20% margin.
Do I work out margin before or after VAT?
Before. The VAT you charge is collected for Revenue, so it is not part of your profit. The calculator works on prices excluding VAT and adds VAT at the end.
How do I work out a price from a margin?
Divide your cost by one minus the margin. For a 25% margin on a €800.00 cost: €800.00 ÷ 0.75 = €1,066.67.
Does the calculator save what I type?
No. It works in your browser and does not send or store your figures.
Put the price on a quote.
NumWise turns your price into a quote your customer accepts online, then into an invoice with the right VAT. 7-day free trial, no card needed.