FilesCalcs

Markup calculator

Enter what an item costs you and the markup you want to add. See the selling price, your profit and the margin that markup works out to.

Worked out in your browser. Nothing is sent anywhere.

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Example figures. Type your own and it updates as you go.

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How to use the markup calculator

  1. Type your cost for the item, ingredient or job.
  2. Enter the markup percentage you want to add.
  3. Read the selling price, the profit per sale and the margin that results.

How markup pricing works

Markup is the percentage you add on top of cost. Selling price = cost x (1 + markup). It is popular with trades, food businesses and resellers because you only need to know your cost to set a price.

  • A mug costs £4 and you mark it up 150%: £4 x 2.5 = £10, a £6 profit.
  • A plumber buys a part for £85 and adds 20%: £85 x 1.2 = £102, a £17 profit.
  • A cake costs £2.40 in ingredients with a 200% markup: £2.40 x 3 = £7.20.

Keystone pricing, a term used in retail, means a 100% markup: double the cost. That gives a 50% margin.

The margin your markup really gives

Markup always looks bigger than margin for the same sale, because it compares profit with the smaller number. A 50% markup on £40 gives a £60 price and £20 profit. As a share of the £60 price, that is a 33.3% margin.

  • 25% markup = 20% margin
  • 50% markup = 33.3% margin
  • 100% markup = 50% margin
  • 200% markup = 66.7% margin

This matters if you have been given a target as a margin (by a lender, a franchise or your accountant). Hitting a 30% margin needs a 42.9% markup, not 30%.

Include every cost before you add markup

Markup only protects you if the cost figure is complete. For a product that could include delivery to you, packaging and card fees. For a job, it could include materials, fuel and your time. A 20% markup on half your real cost can leave you making a loss. If you are VAT registered, add markup to the price before VAT, then add VAT on top.

Questions people ask

How do I calculate markup?

Subtract cost from selling price, divide by the cost and multiply by 100. Buying at £30 and selling at £45 is a £15 profit and a 50% markup.

How do I add a 30% markup?

Multiply the cost by 1.3. A £20 cost with a 30% markup sells for £26.

Is markup the same as profit?

Markup is profit expressed as a percentage of cost. The profit itself is the pound figure: price minus cost.

What markup gives a 40% margin?

A 66.7% markup. A £60 cost marked up by 66.7% sells for £100, leaving £40, which is 40% of the price.