Sales Tax & VAT Margin Calculator
If your prices include VAT or sales tax, part of every sale is not yours. This tool removes the tax from a tax-inclusive price so you see the real price, tax owed, profit and margin.
Who it's for: Sellers in the UK, EU and other VAT countries, or anyone pricing tax-inclusive, who wants a true margin figure.
How to use it
- Enter your tax-inclusive price.
- Enter your unit cost.
- Enter the VAT or sales tax rate that applies.
- Read the price excluding tax, tax due and true margin.
Assumptions
Price excluding tax = price ÷ (1 + rate). Tax = price − price excluding tax. The 20% default is the UK standard VAT rate (GOV.UK: VAT rates (opens in a new tab)). Rates vary by country, product and region; in the US, sales tax is usually added on top of the price and marketplaces like Etsy often collect and remit it for you. This is an editable estimate, not tax advice.
Results are estimates for planning, not tax, legal or financial advice. All figures are editable.
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Go further
Want this in a spreadsheet you can keep? The Profit & Pricing Calculator (Pricing & Margin Calculator, Break-even ROAS, COGS, Discounts, Google Sheets Excel) is a ready-made template.
Get the Profit & Pricing Calculator on Etsy (opens in a new tab)