Pricing · markup guide
30% markup: margin and selling price
A 30% markup means the selling price is your cost plus 30% of that cost, so you multiply the cost by 1.3. It gives a profit margin of 23.08%, because the profit is measured against the higher selling price. An item that costs £100 sells for £130.00 and makes £30.00 profit.
VAT rate checked against GOV.UK on .
Profit margin
23.08%
from a 30% markup
Multiply cost by
1.3
to get the price ex VAT
Price on £100 cost
£130.00
before VAT
With 20% VAT
× 1.56
cost to shelf price
Selling prices with a 30% markup
Price with VAT assumes you are VAT registered and the item is standard-rated at 20%.
| Cost | Selling price | Profit | Price with VAT |
|---|---|---|---|
| £1.00 | £1.30 | £0.30 | £1.56 |
| £5.00 | £6.50 | £1.50 | £7.80 |
| £10.00 | £13.00 | £3.00 | £15.60 |
| £25.00 | £32.50 | £7.50 | £39.00 |
| £50.00 | £65.00 | £15.00 | £78.00 |
| £100.00 | £130.00 | £30.00 | £156.00 |
| £250.00 | £325.00 | £75.00 | £390.00 |
| £1,000.00 | £1,300.00 | £300.00 | £1,560.00 |
Nearby markups
Markup, the margin it gives and the multiplier to use on your cost.
| Markup | Margin | Multiplier |
|---|---|---|
| 10% | 9.09% | × 1.1 |
| 15% | 13.04% | × 1.15 |
| 20% | 16.67% | × 1.2 |
| 25% | 20% | × 1.25 |
| 35% | 25.93% | × 1.35 |
| 40% | 28.57% | × 1.4 |
| 45% | 31.03% | × 1.45 |
| 50% | 33.33% | × 1.5 |
Markup is not the same as margin
People often mix these up. A 30% markup is a 23.08% margin. If you actually want a 30% margin, you need a markup of 42.86%, so the price is cost × 1.4286.
How far you can discount
With a 30% markup you can take up to 23.08% off the selling price before you are selling at cost. A 10% discount leaves a margin of 14.53%, and 20% off leaves 3.85%.
Adding VAT
If you are VAT registered and sell at the 20% standard rate, add VAT after the markup. That makes the shelf price cost × 1.56. The VAT goes to HMRC, so it does not change your 23.08% margin.
Profit in each pound of sales
Gross profit is just under a quarter of each pound you take before VAT, and the goods cost you the other 77p. After a 10% discount you would need to sell about 76% more units to make the same gross profit as at full price.
How far apart the markup and margin are
The two figures drift further apart as the markup rises: the margin is 6.92 percentage points below the markup. On a £100 cost, pricing for a true 30% margin would mean charging £142.86 instead of £130.00. Another 10 points of markup would add 5.49 percentage points of margin.
Other markups
- 15% markup (13.04% margin)
- 20% markup (16.67% margin)
- 25% markup (20% margin)
- 35% markup (25.93% margin)
- 40% markup (28.57% margin)
- 45% markup (31.03% margin)
Common questions
What margin is a 30% markup?
23.08%. Divide the markup by 100 plus the markup: 30 ÷ 130 = 23.08%.
How do I add a 30% markup to a price?
Multiply the cost by 1.3. For example, £40 × 1.3 = £52.00. In Excel or Google Sheets, with the cost in A2, use =A2*1.3.
What is a 30% markup on £100?
£30 of profit, so the selling price is £130.00 before VAT, or £156.00 with 20% VAT added.
How do I work out the cost from a price with a 30% markup?
Divide the selling price by 1.3. A price of £60 means a cost of £46.15. If the price includes 20% VAT, divide by 1.2 first.
Sources and assumptions
- Markup = profit ÷ cost. Margin = profit ÷ selling price. Both use prices before VAT.
- Cost means what you pay for the item, excluding any VAT you can reclaim.
Figures are rounded to the nearest penny or to two decimal places.