Price Calculator: VAT, Margin & Hourly Rate

Frequently asked questions

How do I get from gross to net?

Gross divided by 1 plus the tax rate: €120 gross at 20 % is 120 ÷ 1.2 = €100 net. Taking 20 % off €120 would give €96 and be wrong — the tax was added to the net amount, not to the gross amount. The calculator rounds commercially to the cent.

What is the difference between margin and markup?

Markup relates the difference between selling and purchase price to the purchase price; margin relates the profit to the selling price — both net. If you buy for €100 and sell for €150 net, that is a 50 % markup but only a 33.3 % margin; for the same profit, the markup is always the larger figure. If you enter anything under "Costs and discount per item", the margin uses the profit after those costs.

Which tax rate applies to me?

That depends on the goods or service and is set by your country's VAT law — the calculator does not assign a rate, you choose it. The rates come from official sources of the three countries (as of 2026-10-20). Small businesses under the small business scheme in Austria and Germany charge no VAT and show none on their invoices: choose "Custom rate" with 0 % for that.

How is the hourly rate calculated?

Working days are 52 weeks times working days per week, minus vacation, public holidays and sick days. Of those, only the billable share counts — nobody pays you directly for quotes, bookkeeping or training. Target profit plus business costs, divided by these hours, gives the net hourly rate. The target profit is before income tax and social insurance; what is left of it is not calculated here — please clarify that with your tax adviser.

What happens to my data?

Nothing. The calculation happens entirely in your browser; your figures are never sent to a server or stored anywhere.