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Margin, markup and coefficient

From a net-of-VAT purchase cost and a starting point of your choice — selling price, multiplier coefficient or target markup rate — the calculation returns the gross margin, the margin rate, the markup rate, the multiplier coefficient, the selling price excluding and including VAT, and the VAT collected.

2026 rules — verified on September 4, 2026Free, no account

This content is part of the path: Steering my business by the numbers· Step 4 of 9· Next step: Cash flow from operations (CAF)

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Sources and assumptions

  • legifrance.gouv.fr — LEGIARTI000026950057 — tax year 2026, verified on September 4, 2026
    Excerpt from the source : « Le taux normal de la taxe sur la valeur ajoutée est fixé à 20 %. »
  • legifrance.gouv.fr — LEGIARTI000046869153 — tax year 2026, verified on September 4, 2026
    Excerpt from the source : « La taxe sur la valeur ajoutée est perçue au taux réduit de 10 % en ce qui concerne les livraisons portant sur les produits suivants : »
  • legifrance.gouv.fr — LEGIARTI000047622738 — tax year 2026, verified on September 4, 2026
    Excerpt from the source : « La taxe sur la valeur ajoutée est perçue au taux réduit de 5,5 % en ce qui concerne : »
  • legifrance.gouv.fr — LEGIARTI000028416981 — tax year 2026, verified on September 4, 2026
    Excerpt from the source : « La taxe sur la valeur ajoutée est perçue au taux de 2,10 % en ce qui concerne les recettes réalisées aux entrées des premières représentations théâtrales d'oeuvres dramatiques, lyriques, musicales ou chorégraphiques nouvellement créées ou d'oeuvres classiques faisant l'objet d'une nouvelle mise en scène »

Calculation assumptions

  • The calculation covers a single transaction: one item bought and resold as is. It ignores rebates, discounts and settlement discounts, incidental purchase costs (transport, customs, packaging) and overheads: the margin computed is a gross trading margin, not a margin over full cost.
  • Convention used here, the one of commercial arithmetic: margin rate = margin / purchase cost excluding VAT, markup rate = margin / selling price excluding VAT. Note that Insee uses « taux de marge commerciale » for the ratio of the trading margin to merchandise sales, which is the markup rate here: both vocabularies coexist and do not share the same denominator.
  • The resale-at-a-loss warning compares the selling price excluding VAT with the purchase cost excluding VAT you entered. The legal threshold set by article L442-5 of the French commercial code is the effective purchase price: the net unit price on the purchase invoice, reduced by all other financial advantages granted by the seller and increased by turnover taxes, specific taxes on the resale and transport costs. The calculation does not reconstruct it.
  • The VAT rates offered are those of the VAT calculator this engine inherits from, applicable in metropolitan France. The specific rates of Corsica and the overseas departments are not offered.

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This result is provided for information purposes only and does not constitute personalised tax advice. Check your situation with the tax authorities or a professional.