Profit margin calculator
Gross profit margin from cost and price, the price that gives the margin you want, or the most you can pay for stock.
Add or remove Irish VAT at 23%, 13.5%, 9%, 4.8% or 0%, find the rate a receipt charged, or split a bill with more than one rate. Revenue's 2026 rates, with restaurant food and hairdressing at 9% since 1 July.
Example figures. Put in yours.
Total Net price VAT rate charged Total including VAT
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This VAT calculator for Ireland adds or removes Irish VAT at every rate Revenue uses: 23%, 13.5%, 9%, 4.8% and 0%. Put in a price and it gives you the amount before VAT, the VAT and the total, with the sum shown so you can check it.
It does two more jobs. Find the rate works out which rate a receipt charged. Mixed rates splits a bill with more than one rate on it, such as a restaurant bill where the food is 9% and the drinks are 23%.
Ireland has five VAT rates. These are Revenue’s, checked in September 2026.
| Rate | Name | What it covers |
|---|---|---|
| 23% | Standard rate | Most goods and services: furniture, cars, tyres, batteries, consultancy, solicitors’ fees |
| 13.5% | Reduced rate | Building work, repairs, cleaning and maintenance, some fuels, hotel rooms, cinema and theatre tickets, short-term hire |
| 9% | Second reduced rate | Restaurant and catering food, hot takeaway food, hot tea and coffee, hairdressing (all from 1 July 2026), electricity, gas, sports facilities, periodicals, qualifying new apartments |
| 4.8% | Livestock rate | Livestock, and horses normally used for food or farming |
| 0% | Zero rate | Most food, oral medicines, books and e-books, newspapers, children’s clothes and shoes (under 11), exports |
If you only remember one, make it 23%. It’s the rate for everything that isn’t listed somewhere else.
Three sums cover everything. Use the rate as a decimal: 23% is 0.23, 13.5% is 0.135.
| To find | Formula | Example at 23% |
|---|---|---|
| The VAT | Price before VAT × rate | €200 × 0.23 = €46 |
| The total | Price before VAT × (1 + rate) | €200 × 1.23 = €246 |
| The price before VAT | Total ÷ (1 + rate) | €246 ÷ 1.23 = €200 |
So adding VAT is one multiplication. Here is the number to multiply by at each rate, and the one to divide by when you go the other way.
| Rate | To add VAT, multiply by | To remove VAT, divide by | VAT as a share of the total |
|---|---|---|---|
| 23% | 1.23 | 1.23 | 18.70% |
| 13.5% | 1.135 | 1.135 | 11.89% |
| 9% | 1.09 | 1.09 | 8.26% |
| 4.8% | 1.048 | 1.048 | 4.58% |
Divide the total by 1 plus the rate. That’s all a reverse VAT calculator does.
A receipt for €123 at 23%: €123 ÷ 1.23 = €100 before VAT, so the VAT is €23.
The mistake almost everyone makes once is taking 23% off the total instead. €123 less 23% is €94.71, which is wrong by €5.29. The VAT isn’t 23% of the total. It’s 23% of the price before VAT, and that works out at 18.70% of the total, as the last column above shows.
Choose Remove VAT in the calculator and it divides for you, with the division shown.
Multiply by 1.135. A €2,400 building job carries €324 of VAT at 13.5%, so the customer pays €2,724.
At 9%, multiply by 1.09: a €50 haircut before VAT is €54.50 with it. At 4.8%, multiply by 1.048.
On 1 July 2026, food and catering and hairdressing moved from 13.5% to 9%. Revenue lists what’s in:
What stayed where it was matters just as much. Alcohol, soft drinks and bottled water are still 23%. Hotel rooms are still 13.5%, though the food a hotel serves is now 9%.
That makes a restaurant bill a two-rate sum. Take €65.40 of food and €24.60 of drinks, both including VAT. The food is €60 plus €5.40 at 9%; the drinks are €20 plus €4.60 at 23%. €90 in all, €10 of it VAT. Those are the example figures in Mixed rates, so you can see the split before you put in your own.
Once your turnover passes Revenue’s threshold in a 12-month period. Since 1 January 2025 the thresholds are:
You can register below them if you choose, which can make sense when most of your customers are VAT-registered businesses that reclaim it. Until you’re registered, you can’t charge VAT at all.
Revenue’s list includes the date, a unique number in sequence, your details and your customer’s, what you supplied and when, the unit price before VAT, the breakdown by rate of VAT and the total VAT.
The breakdown by rate is where invoices go wrong. With two rates on one invoice, each gets its own line of VAT. Mixed rates gives you that table, ready to copy.
Taking the rate off the total. Divide by 1.23; don’t subtract 23%.
Using a UK calculator. UK VAT is 20%, and several VAT calculators that turn up in Irish searches are set to it. On €1,000 before VAT, that’s €30 short.
Old rates on restaurant food. Anything served since 1 July 2026 is 9%, not 13.5%. Check your till and your menu prices.
One rate for the whole bill. Drinks, soft drinks included, stay at 23% beside food at 9%.
Mixing up zero-rated and exempt. Zero-rated is a VAT rate of 0%. Exempt means outside VAT altogether. They are treated differently when you reclaim VAT on your costs, so ask your accountant which applies to you.
If you set prices, VAT is half the story. The profit margin calculator takes the VAT out of a price before it works out your margin, and the markup calculator gives the shelf price with VAT added.
Pricing a new website? The website cost calculator shows Irish prices with and without VAT.
Every rate and rule on this page is Revenue’s, read in September 2026: current VAT rates, the second reduced rate, the reduced rate, the zero rate, the VAT thresholds and the information required on a VAT invoice. Rates change at each Budget; this page is checked after every one. It’s a calculator, not tax advice, so for anything particular to your business, ask your accountant or Revenue.
Client results, measured in the numbers the business cares about.
See the work23% is the standard rate, for most goods and services. Ireland has four more: 13.5% (building work, repairs, cleaning, hotel rooms), 9% (restaurant and takeaway food, hairdressing, electricity and gas), 4.8% for livestock and 0% (most food, books, children's clothes).
Multiply the price before VAT by 0.23 for the VAT, or by 1.23 for the total. €200 before VAT carries €46 of VAT, €246 in all.
Divide the total by 1 plus the rate: by 1.23 at 23%, 1.135 at 13.5%, 1.09 at 9%. That gives the price before VAT, and the VAT is the difference. €246 ÷ 1.23 = €200, so the VAT is €46. Taking 23% off the total gives the wrong answer.
Multiply by 1.135. A €2,400 job is €2,724 with VAT at 13.5%, of which €324 is VAT.
VAT = price before VAT × rate. Total = price before VAT × (1 + rate). Price before VAT = total ÷ (1 + rate). Use the rate as a decimal: 0.23 for 23%.
9% for food since 1 July 2026, down from 13.5%, and the same for hot takeaway food and hot tea and coffee. Alcohol, soft drinks and bottled water stay at 23%, and hotel rooms at 13.5%. Mixed rates in the calculator splits a bill with both.
When your turnover passes €42,500 in 12 months for services, or €85,000 for goods, the thresholds since 1 January 2025. You can register below them if you choose, but you cannot charge VAT until you are registered.
A registered business adds VAT to its sales, reclaims the VAT it paid on its business costs, and pays Revenue the difference. The cost lands on whoever cannot reclaim it at the end of the chain, usually the consumer.
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