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Margin Calculator
Calculate the required margin percentage based on cost price, sale price, and VAT rate. This tool helps businesses determine profitability and pricing strategies.
Standard UK VAT rate is 20%
Margin Required:—
How to Use the Margin Calculator
- Enter VAT Rate - Input the applicable VAT rate percentage (e.g., 20 for 20%).
- Enter Cost Price - Input your cost price, which is how much you pay for the product.
- Enter Sale Price (including VAT) - Input the price at which you sell the product to customers, including VAT.
- Click Calculate - The calculator will determine the margin percentage required based on your inputs.
- View the Visualization - The chart will show you the cost price, sale price (excluding VAT), and profit visually.
Formula Used:
Margin (%) = ((Sale Price excl. VAT - Cost Price) / Cost Price) × 100
Where Sale Price excl. VAT = Sale Price / (1 + VAT Rate / 100)