Free · Sales calculators 💸

Markup, Margin & Tax-Inclusive Price Calculator

Build a selling price from cost and markup, then add an entered sales-tax rate while keeping tax separate from profit.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

A cost of 80 with 25% markup gives a pre-tax price of 100, profit of 20 and margin of 20%. Adding an entered 10% sales-tax rate gives a customer price of 110.

Pre-tax price = cost × (1 + markup); tax-inclusive price = pre-tax price × (1 + tax); profit = pre-tax price − cost

Worked example

Enter these known values and leave the other values blank.

Cost before modeled sales tax
80 USD
Markup on cost
25 %
Entered sales-tax rate
10 %
Selling price before tax
100 USD
Margin on pre-tax selling price
20 %
Selling price including tax
110 USD
Pre-tax price less entered cost
20 USD

Assumptions and limitations

  • The rate is supplied by you. This tool does not determine the applicable jurisdiction, taxable base, exemptions, recoverability or invoice-rounding rules.
  • Assumes one percentage tax on the entire pre-tax selling price. Tax collected is not included in the profit result. Costs and markups should match the same product or quantity.
  • Margin must be below 100%. For ordinary sales, use nonnegative costs and tax rates; signed entries represent algebraic adjustments rather than a tax determination.

Common questions

Is the sales tax part of profit?

No. This model calculates profit from the pre-tax selling price minus cost. The separately added tax increases the customer total.

Can I start with a target margin?

Yes. Enter cost, target margin and tax while leaving markup blank. The equivalent markup and prices are calculated.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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