Markup Calculator
Calculate your selling price from cost and markup %, or work backwards from price to cost. Understand the difference between markup and margin.
Quick Calculator Get a fast estimate
R
%
Selling Price
R 150
Profit
R 50
Gross Margin %
33.33%
Markup %
50.00%
Link copied to clipboard!
How to Use This Calculator
Use Cost to Price to find your selling price given a cost and markup percentage. Use Price to Cost to reverse-engineer what you paid for an item. The calculator also shows the equivalent gross margin percentage.
Markup vs Margin Formula
Selling Price = Cost × (1 + Markup% ÷ 100)
Markup% = (Selling Price − Cost) ÷ Cost × 100
Margin% = (Selling Price − Cost) ÷ Selling Price × 100
Margin% = Markup% ÷ (100 + Markup%) × 100
Need more detail?
Extended Calculator More options, charts, and scenario comparison
R
%
Selling Price
R 140.00
Cost
R 100.00
Profit
R 40.00
Markup
40.0%
Margin
28.6%
Price Breakdown
Markup / Margin Conversion Table
| Markup % | Margin % | Price on R100 cost |
|---|---|---|
| 10% | 9.1% | R 110.00 |
| 20% | 16.7% | R 120.00 |
| 25% | 20.0% | R 125.00 |
| 30% | 23.1% | R 130.00 |
| 40% | 28.6% | R 140.00 |
| 50% | 33.3% | R 150.00 |
| 67% | 40.1% | R 167.00 |
| 100% | 50.0% | R 200.00 |
| 150% | 60.0% | R 250.00 |
| 200% | 66.7% | R 300.00 |
Markup vs Margin Conversion Table
| Markup % | Margin % | Price on R100 Cost |
|---|---|---|
| 25% | 20.0% | R125 |
| 50% | 33.3% | R150 |
| 100% | 50.0% | R200 |
| 150% | 60.0% | R250 |
| 200% | 66.7% | R300 |
| 400% | 80.0% | R500 |
Example Calculation
Retail Clothing Store
A Johannesburg retailer buys a shirt for R200 and wants a 120% markup.
Selling Price = R200 × (1 + 120 ÷ 100) = R440
Gross Margin = R240 ÷ R440 = 54.5%
Need full precision?
Professional Calculator Complete parameters, sensitivity analysis, and detailed breakdown
Base Cost
R
Tiered Pricing Structure
| Tier | Min Qty | Markup % | Price | Margin | |
|---|---|---|---|---|---|
| % | R 180.00 | 44.4% | |||
| % | R 155.00 | 35.5% | |||
| % | R 140.00 | 28.6% | |||
| % | R 125.00 | 20.0% |
Competitor Price Comparison
| Competitor | Price | vs Your Retail |
|---|---|---|
| +R 15.00 | ||
| +R 30.00 | ||
| Market Average | R 202.50 | — |
Volume Discount Revenue Projections
| Tier | Units × Price | Revenue | Profit |
|---|---|---|---|
| Retail (1–9) | 5 × R 180.00 | R 900.00 | R 400.00 |
| Small Wholesale (10–49) | 30 × R 155.00 | R 4,650.00 | R 1,650.00 |
| Bulk (50–99) | 75 × R 140.00 | R 10,500.00 | R 3,000.00 |
| Distributor (100+) | 150 × R 125.00 | R 18,750.00 | R 3,750.00 |
Frequently Asked Questions
It depends on your industry, competition, and cost structure. SA retail often uses 50–200% markups. Service businesses can use 300%+ on materials. Research competitor prices and work backwards from what the market will bear.
Markup is calculated as a percentage of cost, while margin is a percentage of selling price. Since selling price is always higher than cost, the same profit represents a higher percentage of cost (markup) than of selling price (margin).
No — always calculate markup and margin on VAT-exclusive prices. VAT at 15% is collected from customers and paid to SARS; it is not your revenue. Use ex-VAT cost and ex-VAT selling price in markup calculations.
Margin% = Markup% ÷ (100 + Markup%) × 100. For example, a 50% markup = 50 ÷ 150 × 100 = 33.3% margin. Conversely, Markup% = Margin% ÷ (100 − Margin%) × 100.