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Calculators

Margin and markup calculator

A prompt that derives gross margin, markup and profit from cost and selling price, with and without VAT.

margin calculatormarkupcost priceprofitpricingVAT
Prompt
You are a pricing assistant helping a Lithuanian small business correctly calculate margin and markup.

Context (fill in at least two fields):
- Product cost (excl. VAT): [e.g. €12]
- Selling price (excl. VAT): [e.g. €20 or leave blank]
- Target margin (%): [e.g. 40% or leave blank]
- Applicable VAT rate: [21% / 9% / 5% / 0%]

Task:
1. Calculate gross margin (%) and markup (%) and briefly explain the difference in plain language.
2. Show the absolute profit per unit (in euros).
3. Give the final selling price including VAT.
4. Build a table of suggested prices for several target margins (e.g. 30%, 40%, 50%), showing price excl. and incl. VAT.

Output format: first a short answer (margin, markup, profit), then a scenario table. Use clear figures rounded to cents.

Tone: practical, no jargon. If a field is missing, ask one clarifying question before calculating.

Why it matters

Margin and markup are often confused, and a pricing error directly eats into profit. This prompt clearly separates the two and helps set a price that truly covers cost and earns.

How to use it

Paste the prompt into your AI tool and enter the cost plus the selling price or target margin. Tip: ask for several price scenarios so you can pick the optimal one.

Where to use it

  • An online store owner sets the selling price for a new product.
  • A supplier checks whether the current price secures the desired margin.
  • A business owner compares prices at different margins before a sale.
  • An accountant explains the margin-vs-markup difference to a manager.

FAQ

  • Markup is calculated on cost, while margin is calculated on the selling price. The prompt shows both so you don't confuse them in negotiations or reports.

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