GST + Profit Margin Calculator

Start from your purchase cost, choose the margin you want, and get the selling price before and after GST. The calculator also shows the GST you collect, the input tax credit on your purchase, and the net GST you'll pay.

Rates and rules last reviewed: 30 September 2026

Selling price per unit (incl. GST)

₹1,258.67

₹1,066.67 + 18% GST

Selling price excl. GST: ₹1,066.67
Profit (25% margin): ₹266.67
Equivalent markup on cost: 33.33%
GST collected on sale (output tax): ₹192.00
Input tax credit on purchase: − ₹144.00
Net GST payable: ₹48.00

Margin is calculated on the price excluding GST. GST you collect is passed on to the government after setting off eligible input tax credit, so it isn't profit.

For guidance only

This calculator gives an estimate for general information. It is not tax or legal advice. Check the applicable rate and rules for your case on the official sources below or with a qualified professional.

How to use the GST + Profit Margin Calculator

Enter the purchase cost per unit excluding GST.
Enter your target margin (on selling price).
Pick the GST rate on the sale and the GST you paid on the purchase.

Formula

Price excl. GST = Cost ÷ (1 − Margin ÷ 100)

Price incl. GST = Price excl. GST × (1 + Rate ÷ 100)

Net GST payable = GST on sale − GST paid on purchase (ITC)

Calculate margin before GST

For a registered business, GST collected on a sale isn't income and GST paid on purchases is recovered as input tax credit. So margin should be worked out on prices excluding GST; GST is added on top at the end.

Worked example

Cost ₹800 + 18% GST, 25% margin, sold at 18%

Price excl. GST = 800 ÷ 0.75 = ₹1,066.67
GST on sale = ₹192.00 → price incl. GST ₹1,258.67
ITC = 800 × 18% = ₹144 → net GST ₹48

Sell at ₹1,258.67; profit ₹266.67; net GST ₹48

Important notes

Input tax credit is available only when the conditions under GST law are met (valid invoice, supplier has filed, goods received, etc.).

Frequently asked questions

Why is my net GST lower than the GST on the invoice?

Because the GST you paid on purchases is set off against the GST you collect. You pay only the difference, which is tax on the value you added.

What if I can't claim input tax credit?

Choose “None / not claimable”. The GST you paid then becomes part of your cost, so consider adding it to the purchase cost.

Sources and review

Last reviewed on 30 September 2026 by the BizToolsIndia editorial team. Official references:

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