Calculate gross profit margin, mark-up, VAT breakdown, and Corporation Tax saving on any invoice. Works for goods or services.
Gross margin is profit as a percentage of revenue: (Revenue − Cost) ÷ Revenue. A 50% margin means you keep €0.50 of every euro of revenue after direct costs.
Mark-up is profit as a percentage of cost: (Revenue − Cost) ÷ Cost. A 100% mark-up means you charge double your cost price, which gives a 50% margin.
Both are valid metrics, but they measure different things. Margin is often used to assess business profitability; mark-up is used for pricing decisions.
If you are VAT-registered, the VAT on your invoice belongs to Revenue — not to you. Your actual income is the net (excluding VAT) amount. Pricing decisions should always be based on net amounts. A common mistake is pricing based on the VAT-inclusive total, which overstates your actual revenue by the VAT component.
Gross profit from your invoices is the starting point for Corporation Tax. At 12.5%, every €1,000 of gross profit generates €125 in CT. The CT saving shown in this calculator reflects how much CT you would pay on the gross profit from a single invoice — useful for understanding the real after-tax return on each piece of work.
The standard VAT rate in Ireland is 23% and applies to most business services. The 13.5% reduced rate applies to fuel, construction services, and some professional services. The 9% rate applies to newspapers, sport facilities, and some food services. If in doubt, check Revenue’s VAT rates guide or ask your accountant.
No. If your turnover is below the VAT threshold (€75,000 for goods / €37,500 for services) and you are not voluntarily registered, you must not charge VAT on your invoices. Charging VAT when not registered is illegal. Once you register, you must charge VAT from your effective registration date.