Margin Sales Tax Calculator
Calculate selling price to achieve desired profit margin including sales tax
Calculate Selling Price with Margin & Tax
How much you paid for the product
Target profit margin percentage
Local sales tax rate (0 if no tax)
Calculation Results
Additional Metrics
Formulas Used
Pricing Strategy Tips
Example Calculation
Retail Product Example
Product: Electronic device
Cost Price: $100 (wholesale cost)
Desired Margin: 30% (target profit margin)
Sales Tax: 8.5% (local tax rate)
Calculations
Selling Price (Pre-tax) = $100 ÷ (1 - 0.30) = $100 ÷ 0.70 = $142.86
Sales Tax = $142.86 × 8.5% = $12.14
Final Price = $142.86 + $12.14 = $154.99
Profit = $142.86 - $100 = $42.86
Result: Customer pays $154.99, you keep 30% margin!
Common Sales Tax Rates
No Tax States (US)
Alaska, Delaware, Montana, New Hampshire, Oregon
Low Tax (2-5%)
Colorado, Wyoming, Wisconsin
Medium Tax (6-8%)
Florida, Texas, Michigan
High Tax (9%+)
California, Tennessee, Washington
EU VAT
15-27% depending on country
Pricing Guidelines
Include Tax in Planning
Always factor sales tax into final pricing strategy
Round Final Prices
Consider rounding to .99 or .95 for psychological pricing
Test Price Sensitivity
A/B test different margin levels to optimize sales
Understanding Margin Pricing with Sales Tax
Why This Calculator Matters
When setting prices, you need to account for both your desired profit margin and sales tax. This calculator helps you determine the exact selling price that achieves your target margin while factoring in tax obligations.
Key Benefits
- •Ensures you achieve your target profit margin
- •Accounts for tax implications in pricing
- •Shows exact amount customer will pay
- •Helps with competitive pricing strategy
Step-by-Step Process
1. Calculate Base Price
Selling Price = Cost ÷ (1 - Margin%)
2. Add Sales Tax
Tax Amount = Selling Price × Tax Rate
3. Final Customer Price
Final Price = Selling Price + Tax Amount
Important: Your margin is calculated on the pre-tax selling price, not the final price the customer pays.