Calculate gross margin, the price needed for a target margin, or the maximum cost you can afford.
Markup Calculator
Find the selling price from cost and markup, or the markup from cost and price.
Runs in your browser — nothing you enter is sent to our servers
How it works
- Selling price = cost × (1 + markup ÷ 100)
- Markup % = (price − cost) ÷ cost × 100
- Equivalent margin % = markup ÷ (100 + markup) × 100
Markup to margin conversion
| Markup | Margin | Price on R100 cost |
|---|---|---|
| 10% | 9.1% | R110.00 |
| 20% | 16.7% | R120.00 |
| 25% | 20.0% | R125.00 |
| 33.33% | 25.0% | R133.33 |
| 50% | 33.3% | R150.00 |
| 75% | 42.9% | R175.00 |
| 100% | 50.0% | R200.00 |
| 150% | 60.0% | R250.00 |
| 200% | 66.7% | R300.00 |
Example
You buy a phone case for R80 and add a 50% markup: 80 × 1.5 = R120. Your profit is R40, which is a 33.3% margin on the selling price.
If you're a VAT vendor, add VAT to the selling price afterwards with the VAT calculator.
Frequently asked questions
What is markup?
Markup is the amount you add to your cost, expressed as a percentage of that cost. A R100 item marked up 50% sells for R150.
Is a 50% markup the same as a 50% margin?
No. A 50% markup on R100 gives a R150 price, which is a 33.3% margin. To get a 50% margin you need a 100% markup (price R200).
What markup should I use?
It depends on your industry, overheads and competition. Your markup must cover overheads and leave profit. Work backwards from your costs with the Pricing Calculator, or check break-even volume first.
Related tools
Price a product from materials, labour, overheads and sales fees to hit a target margin, with or without VAT.
Calculate gross and net profit from price, unit cost, units sold and fixed costs.
Sale price and savings from a discount, stacked discounts, or the discount % between two prices.
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