Trade price in,
selling price
out, with the
margin shown.
Start from your trade cost or a list price less your discount, add a markup or a margin, round it the way shoppers expect, and see the price with and without VAT, the profit per unit and the true margin. Free, no sign-up.
Built for office dealers. Works for any trade price list.
Margin calculator
Start from
Add a
Round up to
VAT rate
- Selling price inc VAT
- £217.19
- Selling price ex VAT
- £180.99
- Your cost
- £120.00
- Profit per unit
- £60.99
- Margin
- 33.7%
- Markup
- 50.8%
Profit, margin and markup are worked out ex VAT, on the rounded selling price.
Markup and margin are not the same number.
A 50% markup on cost is a 33.3% margin on the selling price. If you think in margin and your pricing tool thinks in markup, every price is wrong by the gap.
| Markup on cost | Margin on selling price |
|---|---|
| 20% | 16.7% |
| 25% | 20% |
| 30% | 23.1% |
| 40% | 28.6% |
| 50% | 33.3% |
| 60% | 37.5% |
| 75% | 42.9% |
| 100% | 50% |
How the calculator works it out.
Every figure, in the order the calculator works it out.
Your cost
Your trade cost, or the list price less your discount: a £200 list price at 40% off costs you £120.
Markup
Cost plus a percentage of cost: £120 with a 50% markup sells at £180.
Margin
Cost divided by one minus the margin: £120 at a 40% margin sells at £200, and £80 of it is profit.
Rounding
Rounded up, never down, so the margin you asked for is the least you make: £288.34 becomes £288.99 or £288.95.
VAT
Added on top of the rounded price at the rate you pick. Trade buyers usually see the ex VAT price; consumers must see the price with VAT.
When costs change
A supplier price rise moves your cost, so the same rule gives a new selling price. On Orbit that happens through your pricing rules.
Margin and markup, answered.
The questions dealers ask when they turn a trade price list into selling prices.
Pricing for dealers, in depth.
Guide
Markup vs margin on trade price lists
Worked examples, VAT, rounding and supplier price rises.
Read the guideFor dealers
Ecommerce for office furniture dealers
Supplier ranges in your store, priced by your own rules.
See how it worksFor dealers
Ecommerce for office supplies dealers
Your range online, with each account’s own prices.
See how it works
Set the margin once, on every product.
On Orbit, pricing rules turn a supplier’s trade prices into your selling prices and keep them right when costs change.