Watch profit margin calculator

Work out your real profit on a watch — after marketplace fees, shipping, expenses and VAT — before you commit. Free and instant.

Gross profit

$2,000.00

VAT due

—

Net profit

$1,290.00

Margin / markup

12.9% / 16.1%

Educational estimate, not tax advice. VAT margin-scheme eligibility and rates vary by jurisdiction — consult a qualified professional.

Margins, fees and VAT for second-hand watches

Average dealer markups on luxury watches vary widely — roughly 13–44% gross depending on brand and channel — but the headline number means little until fees, shipping and tax come out. This calculator nets those off so you see real profit.

Many dealers in the UK and EU sell used watches under a VAT margin scheme, where VAT is charged only on the profit margin (selling price minus purchase price), not the full sale. In the UK that works out to one-sixth (16.67%) of the margin at the 20% rate. The US has no VAT — sales tax is collected from the buyer and is generally not a dealer cost. Switzerland's standard VAT is 8.1%.

Educational only — not tax advice

VAT margin scheme eligibility (e.g. goods bought without VAT recovery) and rates vary by jurisdiction and change over time. Confirm treatment with a qualified tax professional. Source: gov.uk VAT margin schemes.

Frequently asked questions

How is the VAT margin scheme calculated?

Under a margin scheme, VAT applies to the margin (selling price − purchase price), not the full price. At the UK's 20% rate that's one-sixth (16.67%) of the margin. This calculator applies that to the buy-to-sell margin when you select UK margin scheme.

What's the difference between margin and markup?

Markup is profit as a percentage of your cost (buy price); margin is profit as a percentage of the sale price. The calculator shows both.

Does it handle US sales tax?

The US has no VAT. Sales tax is generally collected from the buyer (often by the marketplace) and isn't a dealer cost, so leave VAT set to None for US sales unless your situation differs. Verify with a professional.

Is my data saved?

No. All calculations run in your browser. Nothing is sent to a server or stored.

Manage this across your whole inventory

Kigu tracks fees, margins and consignments for every watch — not just one at a time.

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