💰 Margin and Sales Tax Calculator
Calculate price with margin and sales tax
Cost of goods or service
Desired profit margin percentage
Sales tax rate percentage
How to Use This Calculator
Enter Cost
Input the cost of goods or service - the amount you paid or spent.
Enter Desired Profit Margin
Enter your desired profit margin percentage. This is the profit as a percentage of the selling price before tax.
Enter Sales Tax Rate
Enter the sales tax rate percentage for your location. Sales tax is added to the price after calculating the margin.
Review Final Price
See the selling price before tax, sales tax amount, final price with tax, and profit. Use this to price products with your desired margin and account for sales tax.
Formula
Price Before Tax = Cost / (1 - Profit Margin%)
Sales Tax = Price Before Tax × Sales Tax Rate%
Final Price = Price Before Tax + Sales Tax
Example Calculation:
If cost $60, margin 40%, tax 8%:
• Price before tax = $60 / (1 - 40%) = $100
• Sales tax = $100 × 8% = $8
• Final price = $100 + $8 = $108
About Margin and Sales Tax Calculator
A margin and sales tax calculator helps you calculate the selling price needed to achieve a desired profit margin while accounting for sales tax. This calculator first calculates the price before tax needed to achieve your desired margin, then adds sales tax to get the final customer-facing price. This is essential for pricing products and services, ensuring you achieve your profit goals while accounting for sales tax obligations.
When to Use This Calculator
- Product Pricing: Price products with desired margin and sales tax
- Service Pricing: Price services with margin and tax considerations
- Business Planning: Plan pricing strategies
- Tax Compliance: Ensure sales tax is properly accounted for
Understanding Margin and Sales Tax
- Profit Margin: Profit as a percentage of selling price (before tax)
- Sales Tax: Tax added to the selling price, paid by the customer
- Final Price: Price customer pays (includes sales tax)
- Tax Remittance: Sales tax collected must be remitted to tax authorities
Why Use Our Calculator?
- ✅ Accurate Pricing: Calculate prices with margin and tax
- ✅ Profit Goals: Achieve desired profit margins
- ✅ Tax Compliance: Properly account for sales tax
- ✅ Business Planning: Plan pricing strategies
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
How do I calculate price with margin and sales tax?
To calculate price with margin and sales tax: (1) Calculate price before tax = Cost / (1 - Margin%), (2) Calculate sales tax = Price Before Tax × Tax Rate%, (3) Final price = Price Before Tax + Sales Tax. This calculator does all the calculations for you - just enter your cost, desired margin, and sales tax rate.
Is sales tax included in profit margin?
No, sales tax is not included in profit margin. Profit margin is calculated as (Price - Cost) / Price, using the price before tax. Sales tax is added separately after calculating the margin. Sales tax is collected from customers and remitted to tax authorities - it's not part of your profit.
How do I account for sales tax in pricing?
Sales tax is added to the selling price after calculating your profit margin. First, calculate the price needed to achieve your desired margin (Price = Cost / (1 - Margin%)). Then, add sales tax to that price (Final Price = Price + (Price × Tax Rate%)). This ensures you achieve your margin while properly collecting sales tax from customers.
What's the difference between markup and margin?
Markup is (Price - Cost) / Cost × 100 (profit as percentage of cost), while margin is (Price - Cost) / Price × 100 (profit as percentage of price). For example, with cost $60 and price $100: Markup = 66.7%, Margin = 40%. Margin is more useful for pricing because it represents profit as a percentage of revenue. This calculator uses margin, not markup.