Three tools in one place: calculate profit margin and markup, VAT-inclusive and VAT-exclusive amounts and invoice totals in seconds.
Profit margin is calculated on the sale price, while markup is calculated on the cost. They are different!
No. They are the two most commonly confused concepts. Profit margin is profit as a ratio of the sale price; markup is profit as a ratio of the cost.
Profit margin (%) = (Sale price − Cost) ÷ Sale price × 100Markup (%) = (Sale price − Cost) ÷ Cost × 100
Example: if you sell a product that costs 100 ₺ for 150 ₺, your profit margin is 33.3% but your markup is 50%.
Current VAT rates in Turkey are 1%, 10% and 20%. To add VAT to a VAT-exclusive amount:
VAT amount = VAT base × Rate ÷ 100VAT-inclusive = VAT base × (1 + Rate ÷ 100)
To separate the VAT base (the VAT-exclusive amount) from a VAT-inclusive amount:
VAT base = VAT-inclusive amount ÷ (1 + Rate ÷ 100)VAT rates may change under the legislation. For official rates and exemptions, refer to the current communiqués of the Turkish Revenue Administration (GİB). This tool is for general information only.
Since July 10, 2023, the standard VAT rate is 20%, and the reduced rates are 10% and 1%. The old 18% and 8% rates were abolished on that date.
Divide the VAT-inclusive amount by (1 + rate/100) to get the VAT base. For example, the VAT base of 120 ₺ including 20% VAT is 120 ÷ 1.20 = 100 ₺, and the VAT is 20 ₺.
When setting prices, markup (adding to cost) is easier to think about; when reporting profitability, profit margin (as a share of the sale price) is the standard. It's important not to confuse the two — our tool shows both.
It depends heavily on the industry: 20–50% in retail, 60–80% in software/services, and it can be lower in food. Comparing against your own industry average is the best approach.
No, it is for calculation only. For official invoices, you should use the e-Invoice (e-Fatura)/e-Archive invoice (e-Arşiv) system. ÖzgürKod CRM helps you manage quote and invoice processes digitally.
Create quotes with ÖzgürKod CRM, calculate VAT invoice line items automatically and report profitability in real time. Free for 14 days.