iHow it is calculated
The final price adds the markup and then VAT to the cost:
final price = cost × (1 + markup) × (1 + VAT)
At cost £100, markup 30% and VAT 20%: 100 × 1.30 × 1.20 = £156 shelf price.
Advertisement 320 × 50 mobile only · sticky top
Business & Commerce · Updated 2026
Final Selling Price Calculator (Markup + VAT)
Find the final shelf price from the cost, the markup and 20% VAT — the price the customer pays.
Enter your data
£
%
%
Enter the cost and the markup. Choose whether to add 20% VAT for the final price.
=Final price incl. VAT
156£
Cost100 £
Markup 30%+30 £
Price excl. VAT130 £
VAT 20%26 £
Final price incl. VAT156 £
Markup is applied to the cost to get the selling price. Add 20% VAT for the final shelf price.
Purchase cost 100 + 30% = 130 + VAT = 156 £Real-estate and business calculations. Standard formulas for commissions, price per m², margins and markups. Instant in-browser calculation, no account, no data sent. Last updated: 11 July 2026 · gov.uk: how VAT works.
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
Advertisement 728 × 90320 × 250 desktop 728×90 sticky · mobile 320×250
Advertisement 728 × 90320 × 250 desktop 728×90 sticky · mobile 320×250
?Frequently asked questions
How do I calculate the final selling price?
Start from the cost, add the markup for the net price, then add VAT. Formula: cost × (1 + markup/100) × (1 + VAT/100). At cost £100, markup 30%, VAT 20%: 100 × 1.30 × 1.20 = £156.
How do I add VAT to a price?
Multiply the net price by 1.20 for the 20% standard rate. At a net price of £130: 130 × 1.20 = £156 final shelf price.
How do I find the shelf price from a cost?
First add the markup to the cost (for profit and expenses), then VAT. The result is the price the final customer pays.
What VAT rate do I use?
In the UK, the standard rate is 20%, with a reduced rate of 5% (for example on domestic energy) and 0% on most food, books and children’s clothing. Check with HMRC which rate applies to your product.
Does the final price include both markup and VAT?
Yes. The shelf price contains the purchase cost, the markup (the seller’s profit) and the VAT collected for HMRC. All three add up.
How do I find the cost from a shelf price?
Divide the shelf price by (1 + VAT/100) for the net price, then by (1 + markup/100) for the cost. It is the reverse of the final price calculation.
Why is the shelf price much higher than the cost?
Because it includes, besides the cost, the markup (covering rent, wages, logistics and profit) and 20% VAT. The difference can be significant.
How do I set the price for a target margin with VAT?
First compute the net price for the target margin (cost ÷ (1 − margin/100)), then add VAT. The margin applies to the net price, not the one with VAT.
Advertisement 728 × 90320 × 250 desktop 728×90 sticky · mobile 320×250
→Related tools
209 tools · 14 categories
Explore all calculators
€ Salary & Work 16 tools — gross/net, vouchers, leave → % Taxes 19 tools — VAT, income & local taxes → ⌂ Credit 16 tools — mortgage, consumer, APR → ↗ Finance 18 tools — savings, FX, gold, investing → ♥ Health 22 tools — BMI, calories, pregnancy → ∑ Math 22 tools — percentages, geometry, stats → ◷ Time & Date 25 tools — age, working days, dates → ✎ Education 14 tools — averages, BAC, admission → ⛽ Auto & Travel 15 tools — fuel, MOT, routes, distance → ⌂ Real Estate 13 tools — notary, commission, m², rent → ▲ Business & Commerce 12 tools — margin, markup, stock, freelance → ⛨ Insurance 6 tools — home, life, health, travel → § Legal 9 tools — terms, legal interest → ◈ Everyday Tools 11 tools — everyday utilities →
All calculators (209) →