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Pricing maths: cost, markup, discount and VAT

How Altanik turns your cost prices into client prices, totals and margins.

Where the values come from

Set studio defaults in Settings → Organization → Pricing defaults: VAT rate, markup and whether prices are entered net or gross (including VAT). A project can override them, and each item can override VAT, markup and discount.

Altanik uses the most specific value: the item, then the project, then your studio default. Net or gross entry is chosen per list, then project, then studio.

Pricing maths, multiple currencies and budgets are part of the Pro plan.

The calculation

If an item has a client price, Altanik uses it and reports the markup and margin. If it only has a cost price, the client price is cost × (1 + markup).

A discount comes off the client price of the line. Markup and margin are measured on net amounts after the discount: markup = (client net − cost net) ÷ cost net; margin = (client net − cost net) ÷ client net.

Every line is rounded to whole cents (half-up) and totals add up the rounded lines, so net + VAT always equals gross.

Example (net prices): cost 100, markup 30% → client price 130. A 10% discount gives 117 net; 23% VAT adds 26.91, so the client pays 143.91. Your markup is 17% and your margin 14.5%.

Totals, currencies and client mode

Only the chosen option of a group of alternatives counts towards totals. Amounts in different currencies are kept apart, or converted into the project currency using ECB rates or the fixed rates you set on the project.

Turn on client mode in the list toolbar to hide cost, markup and margin on screen. PDF, Excel and proposal exports use client mode by default.