Pricing and margin calculator
Find the price that gives you the margin you want after VAT, marketplace and payment fees, or check what margin your current price really leaves you.
A personal tool, not professional advice. These are calculation tables I built for my own decisions and now share freely. Please check every figure and assumption yourself before relying on it.
Your product
Excluding VAT: purchase, production, packaging
Profit as a share of the price excluding VAT, after fees
Platform and payment fees
Turn this on if you sell through a marketplace or pay card or payment fees on each order.
Margin vs markup
Margin is profit divided by the selling price. Markup is profit divided by the cost. A 50% markup is only a 33% margin, a common source of underpricing. Prices for your cost:
| Margin | Markup | Price excl. VAT | Price incl. VAT |
|---|---|---|---|
| 20.0% | 25.0% | ₪75.00 | ₪88.50 |
| 30.0% | 42.86% | ₪85.71 | ₪101.14 |
| 40.0% | 66.67% | ₪100.00 | ₪118.00 |
| 50.0% | 100.0% | ₪120.00 | ₪141.60 |
| 60.0% | 150.0% | ₪150.00 | ₪177.00 |
| 70.0% | 233.33% | ₪200.00 | ₪236.00 |
Price to charge, incl. VAT
₪118.00
Where the customer’s money goes
- Cost₪60.0051%
- VAT₪18.0015%
- Your profit₪40.0034%
Ratios
Wholesale and retail
If you sell to a shop that resells, your price above is the wholesale price. The shop adds its own margin on top.
Often 30% to 50% depending on the sector
If you sold directly at that retail price, with the same fees, your margin would be 64.0%.
These calculators are spreadsheets I originally made for my own use, shared as they are to help you think things through. They give estimates based on the published rates for the current tax year and on the assumptions you enter, and they may contain errors or simplifications. They are not tax, legal or financial advice: check all the information yourself and with a licensed accountant, lawyer or mortgage adviser before making any decision.
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