# Price and quotation calculator

## Calculator

This calculator allows you to easily perform the main calculations necessary for the preparation of a budget. It also allows you to calculate the profit margin, the cost, or the taxes (VAT).
It is very easy to use, simply select the field you wish to calculate and fill in the fields requested.

## Definitions

### Cost

This is the sum of all the costs we incur in order to sell the product or service.
This amount may include the cost of materials charged to us by our suppliers such as labour, transport costs, etcetera.

### Profit

This is the difference between the selling price excluding VAT and the cost. If what we want to calculate is the percentage of profit or margin, we have to divide the above amount by the selling price excluding VAT.

### Sales price excluding VAT (taxable amount)

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This is the amount that will be invoiced to the customer excluding the corresponding value added tax (VAT).

### VAT (Value Added Tax)

This is a percentage calculated on the taxable base. It is set by the state and each country has a different VAT rate,
but it can also depend on the type of product or service. In Spanish, VAT is called IVA (Impuesto sobre el Valor Añadido).

### Total selling amount

This is the total amount to be paid by the customer.

## Links