Profit margin calculator for used car dealers
Enter what you paid for a vehicle, including a part-exchange, your recon and other costs, and what you expect to sell it for. This tool works out your total cost, gross profit and profit margin, instantly.
What you paid for the vehicle, or the part-exchange value you gave a customer for it.
Other costs cover things like transport, admin, warranty and any prep-related costs not already in reconditioning.
That is also a markup of 20.3% on total cost.
This is your gross profit before VAT. The VAT margin scheme is worked out differently: VAT is due on the sale price minus the purchase price only, before reconditioning and other costs. Use the VAT margin scheme calculator to work that out.
This is an estimate, not financial advice
This calculator gives a quick, before-VAT estimate based on the figures you enter. It does not account for VAT, finance costs, or anything not entered above. Always check your own records and speak to your accountant for a full picture. See the VAT margin scheme calculator
How we work out your profit margin
The calculator adds up everything a vehicle cost you, then compares that to what you sold it for.
Add up total cost
Purchase price plus reconditioning and prep costs plus other costs, for the vehicle only.
Work out gross profit
Sale price minus total cost. A negative figure means the vehicle sold at a loss.
Calculate profit margin
Gross profit divided by sale price, shown as a percentage.
Compare against markup
Markup is gross profit divided by total cost instead, a different way of looking at the same sale.
Part-exchanges work the same way
When you take a vehicle in part-exchange, the part-exchange value you give the customer is simply the purchase price of that vehicle for the purpose of this calculator. Everything else, recon, other costs and expected sale price, works exactly as it would for any vehicle you bought outright.
- The part-exchange value you allow becomes the purchase price field above.
- Recon and other costs still apply before you calculate margin.
- Useful for checking a part-exchange offer still leaves a healthy margin before you agree it.
- Purchase price, recon and other costs recorded against each vehicle as part of your stock records.
- Gross profit and margin visible per vehicle as soon as a sale is recorded.
- Stock and sales reporting to see margin trends across your whole forecourt.
Cost and margin, tracked per vehicle
Vehiso's dealer management system records purchase price, recon and other costs against each vehicle in your stock, so cost and margin are worked out from records you are already keeping. The dealer management system is included on every plan, including the free forever plan, with paid plans adding more stock and higher allowances.
See the dealer management system →Profit margin calculator FAQs
Common questions used car dealers ask about profit margin and part-exchange.
Track cost and margin on every vehicle
Try the calculator above, then start your free trial or explore the free plan, with no card required.