VAT Calculator
VAT-inclusive to exclusive and exclusive to inclusive. 1%, 10% and 20% are preset; net amount and VAT amount instantly.
Unit profit
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Profit Margin and Selling Price Calculator
Profit margin is the profit on a sale as a share of the selling price: (Sales − Purchase) ÷ Sales × 100. This tool works in both directions: enter the purchase price and your target profit to find the selling price, or enter the purchase and selling prices to see your actual margin. It shows the two most commonly confused concepts side by side — markup (profit added on top of cost) and the margin calculated on the selling price, i.e. gross profit margin; they are not the same thing, and when they are mixed up, your prices look more profitable than they really are.
Profit Margin Calculator
Selling price (excl. VAT)
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Markup
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the percentage added to the purchase price
Margin on sales
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what percentage of your revenue is profit
The two rates are different: a 45% markup means roughly a 31% margin on sales. When you talk about profitability, be clear about which one you are using.
Calculation formula
Kâr (brüt kâr) = Satış − Alış Satış fiyatı = Alış × (1 + Maliyet üstü kâr ÷ 100) Maliyet üstü kâr (%) = (Satış − Alış) ÷ Alış × 100 Satış üzerinden marj (%) = brüt kâr marjı = (Satış − Alış) ÷ Satış × 100
Profit, profit margin and profit rate are not the same thing
Four different figures come out of the same sale, and in everyday conversation all four get called "profit." For a product you bought for 100 ₺ and sold for 145 ₺:
| Term | Formula | In the example | What it's used for |
|---|---|---|---|
| Profit (gross profit) | Sales − Purchase | 45 ₺ | The amount you keep from one product |
| Gross profit margin = margin on sales | (Sales − Purchase) ÷ Sales × 100 | %31 | When comparing expenses with revenue |
| Markup = profit on cost | (Sales − Purchase) ÷ Purchase × 100 | %45 | When setting a selling price from the purchase price |
| Net profit margin | (Sales − Purchase − expenses) ÷ Sales × 100 | %9 | When checking whether you really have profit left at month-end |
Which of these four is "profit rate" or "profit percentage"? Both are ambiguous in everyday use: some people mean markup (45%), others the margin on sales (31%). So when you hear a rate, ask what the denominator is — that is the only way to know you're talking about the same number as your supplier or accountant. The calculator above shows both rates on the same screen, so you can see which definition you're working with.
The 9% in the net profit margin example comes from this calculation: if your expenses are 22% of revenue, a 145 ₺ sale carries 31.90 ₺ in expenses, leaving 13.10 ₺ of the 45 ₺ gross profit, and that is 9% of revenue.
Why are markup and margin confused?
If you sell a product you bought for 100 ₺ at 145 ₺, you have put 45% on top of your cost. But the profit rate on your revenue is not 45%, it is 31%: 45 ÷ 145 = 0.31.
The difference looks small, but it changes decisions. A shop owner who says "I work on a 30% margin" is actually putting 43% on top of cost. Use the margin on sales when working out expenses, and markup when setting prices.
What should you take into account when setting a margin?
The purchase price is not your only cost. Freight, wastage, card commission, rent and the share of staff costs that falls on the product also eat into profit. A practical method for small businesses: divide your total monthly expenses by your monthly revenue and add the resulting rate on top of your target margin.
Example: if your expenses are 22% of revenue and you want a 10% net profit, you need to work with a margin on sales of at least 32%.
The item most often overlooked among these is wastage, because it doesn't show up as its own line in the expense table: you paid for the goods that spoiled, broke or were sorted out, and you will only recover that money from the products that come out good. For a product with 8% wastage, goods you bought for 45 ₺ really cost 48.91 ₺; if you base the margin on 45 ₺, your profit looks higher than it is. Find your own rate and your true unit cost including wastage with the wastage rate calculator and enter that figure in this field.
If you bought the same product at different prices, the "purchase price" is not a single number either: the period's profit depends on the method that determines which batch the goods sold are taken from. To find the cost of goods sold starting from the oldest purchase, use the FIFO cost calculator; set the new price based on the latest purchase price.
Bulk price updates
This tool is enough for a single product. To update the prices of hundreds of products at once, use the product price list template: just change the purchase price and the selling price and the VAT-inclusive price are recalculated by formula.
Frequently asked questions
What is profit margin?
Profit margin is the profit you make on a sale as a share of the selling price: (Sales − Purchase) ÷ Sales × 100. On a product you bought for 100 ₺ and sold for 145 ₺, profit is 45 ₺ and the profit margin is 31%. If you divide profit by the purchase price (45%), you get markup, not margin.
What is the difference between gross profit margin and net profit margin?
Gross profit margin only takes the purchase and selling prices into account: (Sales − Purchase) ÷ Sales × 100. Net profit margin also deducts expenses such as rent, staff, freight, commissions and wastage. That's why a business with a high-looking gross margin can still lose money at the net level — this calculator gives you the gross side; for the net margin you need to work out your expenses as a share of revenue separately.
What should the profit margin be?
It varies by sector: 10–20% is common for fast-moving consumer goods, 30–50% for stationery and hardware, and higher margins for services and manual labor. The right figure is the rate that covers your expenses and leaves a net profit on top.
How do I know if I'm selling at a loss?
If your margin on sales is lower than your expenses as a share of revenue, you are making a loss. This can happen even when the margin is positive — a positive unit profit isn't enough.
Where does VAT go?
This tool works excluding VAT because profit is earned on the net amount. To find the shelf price, enter the result into the VAT calculator.
What happens to my margin if I give a discount?
A discount comes straight out of profit. If you work on a 31% margin, giving a 10% discount takes away roughly a third of your profit; see the result first with the price increase and discount calculator.
Related calculators
Price Increase and Discount Calculator
The new price after a percentage increase or discount, the rate of change between two prices, and the effect on profit.
Waste Rate Calculator
Wastage rate and yield percentage, the TL value of the wastage and the true unit cost including wastage.
To keep this calculation in Excel
Product Price List Excel
A price list with barcodes that automatically calculates the selling price from the purchase price and profit margin, plus the shelf price including VAT.
Inventory Tracking Excel
Automatically calculates remaining stock from incoming and outgoing movements, the low-stock alert, and total stock value.
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Last updated: October 4, 2026