Set the right selling price
The free Vivlab margin calculator helps you set your selling price from your purchase cost, and work out your margin, your markup and your multiplier.
Enter your purchase cost, pick your starting point: everything is calculated automatically.
Calculate from…
VAT rate
Selling price excl. VAT
100,00 €
Selling price incl. VAT
120,00 €
Gross margin
50,00 €
Margin rate
100 %
Markup rate
50 %
Multiplier
2,40
How it works
Work out your margin in 3 steps
Enter the cost
Give the purchase price or the unit cost of the product.
Pick the method
Start from a margin rate, a markup rate, or a net selling price you've already set.
Read the results
The net and gross selling price, the gross margin and the three indicators appear at once.
Margin or markup ?
Margin rate
Margin ÷ purchase cost excl. VAT. It measures your profit against what you paid to buy the product.
Markup rate
Margin ÷ selling price excl. VAT. It measures your profit against your selling price, so it always stays lower than the margin rate.
Multiplier coefficient
Selling price incl. VAT ÷ purchase cost excl. VAT. Multiply your purchase cost by this coefficient to get your selling price incl. VAT directly.
The Vivlab tip
Don't mix up margin and markup: a 100% margin is only a 50% markup. Always work from the same basis across your product pages so you can compare prices.
Frequently asked questions
Margin, markup and coefficient
Margin rate or markup rate, what's the difference?
Both start from the same margin in euros but divide it by a different figure. The margin rate divides the margin by the purchase cost; the markup rate divides it by the selling price. An item bought at 50 € and sold at 100 € net earns 50 € of margin, which is a 100 % margin rate but a 50 % markup rate.
What is the multiplier coefficient for?
It gives the gross selling price in one step: multiply the purchase cost by the coefficient. With a coefficient of 2.4, a product bought at 50 € sells at 120 € including tax. Handy for applying the same pricing rule across a whole catalogue.
What margin should I aim for?
It depends on the sector. Retail often sits around a 30 to 50 % markup, catering aims for a coefficient of 3 to 4 on raw ingredients, services show higher margins but mostly bill time. What matters most is what's left once your fixed costs are covered.
Should I work out margin on the net or the gross price?
Always on the net, tax excluded. VAT is not income: you collect it for the state and pass it on. Working out a margin on the gross overstates it and distorts your selling prices.
Do my figures stay private?
Yes. Everything is worked out in your browser, nothing is sent or stored. Your purchase costs and prices never leave your screen.
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